Vermont Business Magazine Price increases for gasoline, diesel, and fuel oil added $124 million in estimated costs for Vermont drivers and fuel oil customers over the last three months. That’s one of the key findings of the latest analysis from the Energy Action Network (EAN), a statewide non-profit organization that conducts energy-related data tracking, research, and analysis. Since early March, EAN has been analyzing the cost increases that Vermont and Vermonters have been facing since fossil fuel price spikes began after the start of war in Iran on February 28th.
Gasoline prices were about $1.50 gallon higher at the end of May ($4.47/gal) as compared to pre-war prices ($3.00/gal) – a nearly 50% increase. EAN’s analysis shows that those higher prices add more than $75 a month in costs for the average Vermont driver, from about $165 per month to about $240 per month.
Similarly, statewide average fuel oil prices were $1.11 per gallon higher in May ($5.09/gal) than at the end of February ($3.98), a 28% increase. Those higher prices have increased the cost of a 200-gallon delivery of fuel oil by more than $200, from about $800 pre-war to more than $1,000 in April and May.
EAN’s updated analysis covers the three months of March through May, 2026. Over this period, total gasoline costs in Vermont were over $77 million higher than they would have been if prices had stayed at their end of February level ($293 million vs. $216 million). Over a full year, gasoline at $4.50/gallon rather than $3.00/gallon would translate to an increase in annual statewide gasoline costs of about $431 million.
Over the same three month period, fuel oil costs in Vermont are estimated to have been $22.8 million higher than they would have been if prices had held at their end of February level ($109.5 million vs. $86.7 million). Over a full year, fuel oil at $5.00/gallon rather than $4.00/gallon translates to an increase in annual statewide fuel oil costs of about $89 million.
Unfortunately, the costs to Vermont of continued fossil fuel dependence and exposure to fossil fuel price volatility are not new. About 80% of total average household energy costs in Vermont come from the use of fossil fuels for transportation and heating, creating a large energy cost burden for households.
Over the years, EAN’s research has identified five key features of fossil fuels. They are expensive; price-volatile; drain money out of the Vermont economy; heavily polluting, and inefficient. More information and analysis on energy affordability is available in EAN’s 2025 Annual Progress Report for Vermont.
In contrast to gasoline vehicles, electric vehicles cost less to drive. This is a combined result of the far greater efficiency of EVs; lower and more stable electricity costs; and lower maintenance costs for EVs. EVs also keep far more energy dollars staying and recirculating in Vermont – doing more to invest in Vermont and Vermont jobs – while also creating seven times less climate pollution than gasoline vehicles over their lifetime. When possible, carpooling, using public transportation, and other transportation alternatives can also help mitigate the impact of gasoline price increases.
With regard to heating fuel costs, fuel oil is especially expensive and price volatile. It also drains a higher share of heating dollars out of state than any other heating fuel. Ways to reduce heating costs over time that are available statewide can include weatherization, and – when possible – transitioning to heat pump and/or advanced wood heating equipment. For customers in VGS territory, fossil gas has historically cost far less as a heating fuel than fuel oil or propane. For more information on incentives for weatherization and more efficient heating options, visit efficiencyvermont.com.
6.15.2026. Energy Action Network
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