Iran war worsens US energy affordability crisis, heating oil bills up 50%
Families relying on heating oil face an extra $900 this winter as the Iran war drives up energy costs, deepening an existing affordability crisis.
At a glance
- Heating oil bills may rise 50% this winter, adding nearly $900 for affected U.S. households.
- The war in Iran is amplifying an existing energy affordability crisis, with electricity shutoffs up 28% in 10 states over two years.
- Congress is urged to add $3 billion to LIHEAP and expand eligibility to struggling middle-class families before winter.
Heating oil bills for U.S. households could rise nearly 50% this winter, adding roughly $900 to the cost of keeping homes warm, according to energy economist Mark Wolfe. The increase is tied to market disruptions from the war in Iran, which is amplifying an already severe energy affordability crisis for millions of Americans.
Wolfe, executive director of the National Energy Assistance Directors Association (NEADA), said the war did not create the crisis but is making a bad situation much worse. Research by his organization found electricity shutoffs in 10 states increased 28% over the past two years, with millions of households already falling behind on utility bills and choosing between energy, food, medicine, and rent.
Heating oil and diesel are essentially the same petroleum product, and both have been hit hard by global energy market disruptions. Higher diesel prices raise the cost of transporting food, delivering goods, and operating farm and construction equipment, with those costs eventually passed on to consumers.
For households dependent on heating oil, the impact is immediate and unavoidable, unlike gasoline, which families can sometimes reduce by driving less. President Trump has described higher oil prices from the war as "a very small price to pay for USA, and world, safety and peace," but Wolfe argues the burden is especially heavy for families on social security and minimum-wage workers.
Even if the war ended tomorrow, Wolfe noted, energy prices would not necessarily return to previous levels. Damaged refineries, closed shipping routes, and depleted petroleum inventories could take months to recover, leaving families unable to delay paying heating bills.
Congress is urged to act before winter arrives by adding $3 billion to the Low Income Home Energy Assistance Program (LIHEAP) and temporarily expanding eligibility to struggling middle-class families. A recent Consumer Reports survey found more than a quarter of families reduced heating and cooling to uncomfortable levels to save money, while 19% cut back on groceries or switched to cheaper food options.
Wolfe also called for a long-term shift toward energy sources like wind and solar, whose costs are not driven up by overseas conflicts, arguing that domestic oil and gas production alone has not shielded U.S. families from global price shocks.
Source: The Guardian Business
Questions and answers
- How much more will heating oil cost this winter?
- Families using heating oil could face bills up to 50% higher, adding nearly $900 to the cost of keeping homes warm, according to energy economist Mark Wolfe.
- Did the Iran war cause the U.S. energy affordability crisis?
- No, the crisis predated the war, but the conflict is making it worse by driving up global energy prices, particularly for heating oil and diesel.
- What is being proposed to help struggling families?
- Lawmakers are urged to add $3 billion to the Low Income Home Energy Assistance Program (LIHEAP) and temporarily expand eligibility to middle-class families.
