Here’s how much extra heating oil could cost you this winter
Fuel oil prices have skyrocketed this month, leaving many Islanders worried about how they will heat their homes when the temperature drops this winter.
And these worries are not unfounded. The increase comes on top of rising inflation for other essentials like rent, groceries and gas.
As of October 21, a liter of heating oil costs $1.875 per litre. But what does this mean for the average islander?
We decided to do some math.
The table below allows you to select your estimated fuel consumption (which will vary greatly depending on the size of your home, how well insulated it is, how much heat you will keep in your home, etc.) and see how much you’ll spend on oil this year — assuming you’re buying at today’s prices.
We also compared current costs to oil prices over the past decade (using figures from October 15 of each year for comparison).
According to Kenmac Energy, a three-bedroom bungalow will consume approximately 3,000 liters of fuel per year for heating and hot water.
So this three-bedroom bungalow will cost about $5,625 to heat this year, which is $2,000 more than last year’s price of $3,603 and $2,500 more than it would have cost there. ten years old.
Assuming you turn the heat on November 1 and turn it off March 31, that averages out to about $37 a day, up from $21 a day in 2013.
It should be noted that the average household income in P.E.I. is $64,000 per year, according to Statistics Canada. That’s just over $5,300 a month after taxes — and at those prices, $468 of that would go straight to heating oil.
Someone earning minimum wage makes about $109 a day before taxes (i.e. $13.70 an hour assuming an eight hour shift) – and if they own this three-bedroom bungalow, $37 of that daily income will go directly to heating his home. This winter.
The price of fuel oil has been volatile over the past decade, unlike the consumer price index for all items which tends to rise steadily.
From 2013 to 2020, the price of fuel oil has been below the CPI for all items. In 2021, it climbed to match the CPI – and that strong climb has continued this year.
At 177% of its price in 2013, the price of heating oil far exceeds the increase in the price of groceries, rent or gasoline.