Connecticut fuel industry leaders warned that near-record heating oil, gasoline and diesel prices were likely to keep rising this winter
A federal release from the Northeast heating oil reserve would have little effect on prices, an industry leader said
Connecticut released $12.7 million to help residents with heating costs through the state’s energy assistance program
Barring unforeseen changes in the Iran War or Russian invasion of Ukraine, Connecticut fuel industry leaders are warning that the already-near-record cost of home heating oil in the state, in addition to gasoline and diesel fuel, is likely to keep going up as the winter nears.
Heating oil is averaging as much as $6.15 per gallon in Connecticut as of October 26, according to the Energy Information Administration.
Connecticut Energy Marketers Association president and CEO Chris Herb told Connecticut Public that while past price spikes were largely due to financial market swings, growing concerns about physical supply make this winter’s crunch more pressing.
Pressure on diesel and heating oil was not easing, Herb said, citing seasonal agricultural demand, demand for heating oil ahead of winter and disruptions to oil deliveries from the ongoing Iran war and Russia’s invasion of Ukraine.
This month, the federal government offered to sell home heating oil from its Northeast reserve, CT Insider reported. Herb told the publication that the offer of up to 315,000 barrels, or about 13.2 million gallons, was small relative to demand, given that Connecticut uses up to 500 million gallons of home heating oil each year.
The release came as U.S. fuel inventories were already more than 10% below average levels, and companies that buy the reserve oil must return the same amount, plus a premium, before next year’s heating season, CT Insider reported.
“This will have no material impact on prices whatsoever,” Herb told CT Insider.
Herb told Connecticut Public he was concerned that, with fuel reserves already below historic averages, an extreme cold snap that restricted natural gas supplies could strain supply further if power generators had to switch to oil and diesel.
Herb also told Connecticut Public that gas prices were fluctuating out of step with the market, making conditions less predictable.
In October, state leaders agreed to release $12.7 million from the state’s Federal Cuts Response Fund for the Connecticut Energy Assistance Program, which helps residents pay to heat their homes, WTNH reported.
Residents in financial need can apply for aid through CEAP and Generation Power CT.
By Joe O’Leary
