As home heating oil costs surge, so does demand for assistance

In the early days of the COVID-19 pandemic, many North Americans kept their cars parked for long periods of time.

According to energy analyst Patrick Dehaan, the impact on the oil and gas industry was dramatic.

"It caused demand to plummet,” said Dehaan.

He adds that as prices dropped, gas and oil production were reduced. However, now that COVID-19 restrictions are easing, people are going outside more.

“Demand has surged and, unfortunately, faster than supply has been able to come back online, and that imbalance has pressed oil prices up,” explained Dehaan.

The cost of home heating oil has been climbing in Canada, reaching the $1.40 to $1.50 per litre range in some cases.

"They're up anywhere from 30 to 50 per cent, depending on the fuel versus what we were spending a year ago," said Dehaan.

That was too expensive for Alex Chiasson, who had oil as a primary source for home heating before he switched.

“Some companies won’t give you a half order, and it is all or nothing, and that can be like $300,” said Chiasson, who said it all adds up to mounting financial insecurity. “We have COVID-19 right now, and we have people’s job security just not there. There are just so many unknowns right now and no peace of mind for a lot of people.”

There are programs in place to offer home heating assistance. In response, the Salvation Army, in partnership with the Nova Scotia Government and Nova Scotia Power, has established The Heat Fund.

“The fund is set up so that it’s $400 made available to individuals who satisfy the criteria," said Maj. Vaden Vincent from the Salvation Army. "People are struggling quite a bit."

To qualify, a one-person household must be making less than $29,000 per year. The threshold for a two-to-four-person household is $47,703 and households of five or more people is just under $67,937.

Vincent said there is a high demand for financial assistance from The Heat Fund, with more than 3,000 applicants waiting for their request to be processed.