With winter coming, many are concerned about the U.S. being plunged into a heating and energy crisis as the price of oil is high and inflation continues to plague the economy. Now the Biden administration is facing pressure from the northeast as the region is already bracing itself for winter.
Bloomberg reported that the price of heating oil on the East coast is already high, Connecticut sellers are actually rationing oil supplies, and that “New England’s stockpiles of diesel and heating oil … are a third of normal levels.”
“It’s going to be pretty bad. Diesel, heating oil and natural gas prices are through the roof. When you’re on a fixed salary, how does it impact your overall budget? It has to be bad,” Marcus McGregor, head of commodities research at Conning Inc., told Bloomberg.
Particularly with the northeast facing an energy crisis, Bloomberg reported that even “[a] Massachusetts-based utility is imploring President Joe Biden to prepare emergency measures to prevent a gas shortage.”
The Energy Information Administration has already predicted that the average household expenditure for natural gas this winter (October through March) will be 28 percent more than last year, with a household paying a base average of $930.
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If the winter turns out to be 10 percent colder than last year, the price of natural gas could go up to $1,096 (a 51 percent increase from last winter) per household, the EIA outlined.
Meanwhile, the EIA measured the base price average for heating oil at $2,354 per household (a 27 percent increase from last year). If the winter is 10 percent colder, that could go up to $2,605 (a 40 percent increase).
Propane is predicted to have a 5 percent base increase, costing $1,668 per household, and a possible 36 percent increase if the winter is 10 percent colder, which would drive the cost to $2,157 per household.
In light of this, many have been waiting for the Biden administration to react and find ways to ease the pressure on Americans this winter.
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