Households in the northeastern United States are confronting sharply higher heating oil costs as winter nears, driven in part by disruptions linked to the ongoing conflict involving Iran. The closure of the Strait of Hormuz in February has caused a 50% increase in heating oil prices, which have reached a record high of $6.14 per gallon, according to data from the U.S. Energy Information Administration (EIA). Heating oil, a petroleum product refined from crude oil and commonly used to heat homes in the region, closely tracks diesel prices.
The surge in heating fuel expenses is placing a significant strain on low-income families across the northeast, with the National Energy Assistance Directors Association estimating an additional $1.1 billion in heating costs for vulnerable households this winter—a 50% rise compared to previous years. Dan Coyne, CEO of the United Way of Southern Maine, reported a marked increase in calls for emergency heating aid, with some residents forced to choose between heating and essentials like medication and rent.
In response to rising oil prices, some residents in Maine have turned back to older heat sources such as firewood. Tony DiMarco, operator of a “wood bank” in Freeport, noted that demand for firewood has jumped earlier in the season and that many families are installing wood furnaces to reduce dependence on costly heating oil. This shift has, however, driven up firewood prices as well. Organizations distributing wood fuel have seen significant increases in their operations: the volume of wood supplied by DiMarco’s service has doubled relative to the previous heating season, while Midcoast Wood Bank in Topsham anticipates a 67% rise in wood pellet deliveries. Monthly wood pellet sales nationwide have increased by about one-third compared to last year.
Northeastern states remain heavily dependent on heating oil due to historical resistance to natural gas infrastructure. While much of the United States heats homes primarily with natural gas or electricity, heating oil fuels approximately half of Maine households and covers over a third of the homes in New Hampshire, Vermont, and Connecticut. Unlike regulated utilities, heating oil is sold by independent dealers, offering fewer protections such as payment plans or shutoff safeguards for consumers.
The heating oil price spike is emerging as a key issue in Maine’s closely contested U.S. Senate race between incumbent Susan Collins and challenger Troy Jackson. Jackson has criticized Collins for supporting military action related to Iran, attributing soaring energy prices to the conflict Collins voted against halting. Collins, in turn, has sought President Donald Trump’s intervention, requesting access to the nation’s emergency heating oil reserves to mitigate costs for her constituents and has highlighted a $38 million allocation toward home heating assistance programs.
The Biden administration has also taken measures to address fuel supply challenges, including securing a diesel release agreement with Russia earlier in October. Meanwhile, efforts to expand natural gas infrastructure in the Northeast face lingering opposition rooted in environmental and community concerns. Several states—Massachusetts, New Hampshire, and New York—have historically blocked pipeline projects, limiting consumers’ alternatives to heating oil.
Despite these challenges, some gradual shifts to natural gas and electric heat pumps have been observed. In Maine, the share of homes heating with natural gas increased from 3.5% in 2000 to 8.3% in 2024. However, industry experts warn that existing infrastructure remains insufficient to quickly replace heating oil in many areas, and pipeline expansions will take time to impact the market. The U.S. Department of Energy recently allocated $42 million through the Defense Production Act to support the Constitution Pipeline, designed to transport natural gas from Pennsylvania to New York, providing some potential relief.
With winter approaching, many northeastern residents face difficult choices and increased financial burdens as the region adapts to ongoing geopolitical turmoil and its ripple effects on energy markets.