Article Summary –
Heating costs for American households are expected to rise by nearly 9% this winter, largely due to increased electricity and heating oil prices, with heating oil costs projected to climb significantly as a result of geopolitical tensions, such as President Donald Trump’s military actions in Iran affecting oil shipments. The National Energy Assistance Directors Association (NEADA) reports that more than 275 utilities have increased rates or are planning to do so, potentially adding over $101 billion in costs by 2028, and highlights concerns about low-income families struggling with payments, possibly leading to service disconnections. Although heating oil customers are anticipated to see a 31% increase in costs, overall energy expenses have risen about 24% since 2021, but this may be partially offset by warmer winter temperatures due to El Niño.
American households are bracing for higher heating costs this winter, largely due to escalating fuel prices linked to President Donald Trump’s activities in Iran.
This winter, home heating expenses are expected to jump by nearly 9%, according to the National Energy Assistance Directors Association (NEADA). Their recent analysis suggests that families will spend an average of $1,030—$82 more than last year.
Higher electricity and heating oil prices are driving the increase.
Over 275 U.S. electric and natural gas utilities have raised rates, obtained approval, or proposed hikes since 2025. The additional costs could surpass $101 billion by 2028, reports NEADA.
Federal data showed heating oil at $3.68 per gallon between October and December 2025. Following Trump’s military moves in Iran, with Iran obstructing oil through the Strait of Hormuz, prices are forecasted to reach $5.66 per gallon this year.
NEADA’s executive director, Mark Wolfe, warned on Sept. 14, “Families face home heating costs rising twice the inflation rate,” referencing a press release.
As prices rise, NEADA is concerned about utility disconnections for those unable to pay. In 2024, utilities cut electric service about 13.4 million times and natural gas service 1.7 million times over nonpayment issues.
Heating oil users will be most affected, with bills expected to surge 31%. According to the U.S. Energy Information Administration, roughly 4.79 million American households mainly used heating oil last winter, predominantly in the Northeast.
Families using electric heating and propane will likely see a 9% rise in costs, while natural gas users may encounter a 6% increase.
Energy costs have soared about 24% since the 2021-22 winter season.
NEADA mentioned that the El Niño weather pattern might lessen heating demands this year due to expected warmer winter temperatures.
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