The international conflict has severely constrained diesel and heating oil supplies, which directly inflates consumer prices for shipping, construction, and basic groceries. This sudden surge arrives as domestic utility shutoffs have already escalated dramatically over the last two years. While federal leaders anticipate relief once hostilities end, physical damage to critical refineries and supply routes will likely slow any market recovery. Consequently, advocates are requesting a $3 billion federal funding injection to expand seasonal energy aid to both struggling and middle-income families.
Key points
Global supply disruptions to diesel and heating oil are driving up broader domestic price…: Global supply disruptions to diesel and heating oil are driving up broader domestic prices for food and shipping.
Damaged refineries and depleted reserves will prevent an immediate decline in energy pric…: Damaged refineries and depleted reserves will prevent an immediate decline in energy prices when the conflict ends.
Advocates are pushing Congress to increase energy assistance funding by $3 billion and op…: Advocates are pushing Congress to increase energy assistance funding by $3 billion and open eligibility to middle-class households.
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Heating oil may be the clearest warning yet of how the war in Iran is deepening the US’s energy affordability crisis. Families who heat their homes with oil are facing bills that could be 50% higher this winter, adding nearly $900 to the cost of keeping their homes warm. These families were already struggling before the war began.
As the Guardian recently reported, research by my organization found that electricity shutoffs in 10 states had increased 28% over the past two years. Millions of Americans were already falling behind on their utility bills, forced to choose between paying for energy, food, medicine and rent. Now they face another round of increases in gasoline, electricity and home heating costs.
The war didn’t create America’s energy affordability crisis. But it is making a bad situation much worse.
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