The Department of Energy (DOE) announced it will loan up to one third of the Northeast Home Heating Oil Reserve to private fuel companies to mitigate high fuel costs. In a new insight, Director of Energy and Environmental Policy Shuting Pomerleau considers the potential impact of the emergency measure and explains why it is unlikely to translate into noticeable price decreases for consumers.

Key points:

• U.S. average residential heating oil prices jumped to $6.19 per gallon in mid-October 2026, a 74-percent increase from $3.56 per gallon in October 2025.
• High fuel prices will disproportionately impact the Northeast, especially Maine, as 80 percent of U.S. households that heat with oil reside in the region; this price surge is driven by the Middle East energy shock, the global diesel market disruption, and severe pipeline infrastructure constraints in the region.
• DOE’s emergency release is unlikely to deliver meaningful consumer price relief, as the authorized volume represents only a fraction of winter demand, and ongoing global oil market disruptions continue to put upward pressure on prices.

Read the analysis.