Demand for provincial home heating program up in October

With increased costs to Islanders due to post-tropical storm Fiona, plus a rapid rise in the price of home heating oil, demand for a provincial subsidy program to heat homes is up on P.E.I. 

The Salvation Army administers the provincial program, which provides up to $1,000 per year to low-income households. 

"Unfortunately for many people who have been impacted by the hurricane and just normal life, this increase in the cost of home heating oil is really hitting them hard," said Lt. John Burton with the Salvation Army in Charlottetown. 

"Their funds are being stretched because they have to replace food that was lost because of the storm. And now they have to buy furnace oil because it's getting cold."

After the most recent jump Wednesday, the current price for home heating oil is at a maximum of $1.87 per litre — a record high for this time of year on P.E.I.

Burton said applications for the subsidy program are up more than double this month compared to September 2022, when they saw between 80 and 85 applications. 

The Salvation Army receives $3 million each year to run the program, which means it can serve about 2,700 households on P.E.I. 

'I'd be surprised if there's anything left'

Last year, the program used all of its funds, and Burton said he expects the same this year.

"By the time the program is due to renew, I'd be very surprised if there's anything left," said Burton.

He said the group is planning to ask the government for an increase to its budget next year, and added government officials have already reached out to ask how the program is doing so far this fall. 

"There's gonna have to be a discussion as to whether that $1,000 is enough," said Burton. 

The Island Regulatory and Appeals Commission sets petroleum prices, including heating oil, on P.E.I.

IRAC spokesperson Jaclynne Hamel told CBC News: Compass host Louise Martin that prices have been rising fast recently due to a combination of increased seasonal demand and current market conditions. 

"Normally around this time of year, we would see the price of furnace oil increase over the fall and winter months as a result of increased demand with colder weather," said Hamel. 

She said an increased demand for diesel in Europe and a recent OPEC decision related to reduced production are also affecting the price right now.

IRAC must adhere to its mandate

Hamel said IRAC acknowledges that Islanders are still recovering from Fiona, but said the commission must still adhere to its mandate. 

"The commission is really tasked with making sure that prices are fair for Islanders, but also that wholesale and retailers are able to make a reasonable rate of return," said Hamel. 

Burton said the Salvation Army will put aside extra funds to help Islanders if they need more help than the program offers this winter. 

And he hopes temperatures don't dip too far.

"We will be keeping an eye on the weather … and hope that, to be honest, maybe we have a mild winter," said Burton.