Richmonders face higher heating costs this winter
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Richmonders will likely be paying more to heat their homes this winter, especially if they use oil, a new analysis reviewed by Axios shows.
Why it matters: Winter is coming — and heating bills are already eating into household budgets.
State of play: Households that heat with oil could pay about 50% more this winter than last, according to estimates from the National Energy Assistance Directors Association (NEADA).
- Nationally, that would add about $878 to the average heating oil bill, bringing the winter total to more than $2,600.
- The U.S. Energy Information Administration projects a smaller, 21% increase in heating oil costs, while electricity bills are expected to rise 4% nationally and 3% across the South, including Virginia.
- Natural gas and propane users are in luck — those bills are projected to fall 9% and 3% respectively.
By the numbers: 66% of Richmond-area households rely on electricity for heat, compared with 27% using natural gas and just 2% using heating oil or kerosene, per Census estimates.
- Yes, but: That's still nearly 12,000 households across the metro area that heat with oil or kerosene — largely concentrated in Hanover, where 3.7% of households use it and Richmond city, where 3.1% of households use oil.
The big picture: Richmond-area households are already paying more for utilities.
- Dominion Energy's typical Virginia residential electric bill for 1,000 kilowatt-hours climbed 47% from $122.66 in December 2019 to $180.31 in October 2026, according to the utility's latest filing with state regulators.
- Dominion projects that same $180.31 monthly bill could reach $203.26 in 2027.
- Richmond Gas Works also raised natural gas rates July 1, adding an estimated $3.97 a month for a customer using 70 Ccf, according to the city's Department of Public Utilities.
- Meanwhile, residential heating-oil prices in Virginia reached $6.04 per gallon Oct. 26, up about 67% from a year earlier, per EIA data.
Between the lines: Heating oil prices are rising as global oil markets falter because of the wars in Iran and Ukraine and as refinery activity declines.
Be smart: Virginians who need help covering winter heating bills can apply for the state's Fuel Assistance program through Nov. 13.