Federal heating oil release is unlikely to bring Pennsylvania prices down much, analysts say
The Energy Department will auction 315,000 barrels from the Northeast reserve next month. Analysts told WHYY it amounts to about a day of peak winter use. About 685,000 Pennsylvania households heat with oil or kerosene.
The Trump administration plans to release 315,000 barrels of heating oil from the Northeast Home Heating Oil Reserve next month, but energy analysts said it likely won't do much for Pennsylvania prices that have passed $6 a gallon, WHYY reported in a story published by WESA on Tuesday.
This is a follow-up to our Oct. 26 article on heating oil prices and state heating aid. What's new is the federal step, and what experts expect from it.
What the federal government is doing
The Department of Energy will auction the oil from terminals in Maine, Massachusetts and Connecticut, and suppliers that borrow it must return it with a premium by next winter, according to the report.
An S&P Global Energy analyst told WHYY the release equals about a day's consumption at the peak of winter, and that restoring lost supply from the Middle East and Russia is the only real fix. A Penn State energy economist said it might help slightly, either through Pennsylvania suppliers buying the oil directly or through lower regional prices, but would likely have little effect.
Why prices are this high
Heating oil prices track diesel, which has climbed because of shipping disruptions in the Strait of Hormuz and attacks on refineries in the Middle East and Russia, WHYY reported. The U.S. Energy Information Administration says prices are at their highest level since at least 1990, and nearly double what they were a year ago, according to the report.
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About 685,000 Pennsylvania households, roughly 13% of the state, heat with oil or kerosene, much higher shares than in Delaware or New Jersey.
The same diesel prices are squeezing school districts. Diesel averaged $6.54 a gallon in early October, compared with $3.97 a year earlier, WVIA reported in a story republished by WESA. Many districts contract with small bus companies, and some school boards have approved temporary fuel stipends; one northeastern district added 20 cents a mile.
What residents can do
- State heating aid opens Nov. 2. Households that struggle to pay for heat can apply for the Low Income Home Energy Assistance Program, or LIHEAP, starting Nov. 2, WHYY reported. Our Oct. 26 article explains who qualifies and how to apply.
What the records add
The General Assembly is in recess until after the Nov. 3 election. The House returns Nov. 9 and 10 and the Senate Nov. 17 and 18, according to the House and Senate calendars. None of the reports on the price spike cited here point to a state bill on heating oil costs scheduled for those days LIHEAP is the main aid program named in the coverage.