Home Heating Could Get 42% More Expensive In Canada

As the weather gets colder, more and more Canadians are pumping up the temperatures in their houses to stay warm.

Unfortunately, your heating bills could make a major jump this winter. Due to the Iran war, heating oil prices are now 42% more expensive across the country.

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Heating Oil Price Increases in Canada

According to Natural Resources Canada, average retail prices for furnace oil have jumped almost a whole dollar higher when comparing now (~$2.50/L) to before the Iran war began (~$1.76/L). Experts have repeatedly confirmed that these price increases are directly linked to the war, as continuous disruptions have lead to plummeting production and distribution.

For Canadians, that means higher prices for gas, as well as the oil that heats some of our homes. As the cost of living soars, some Canadians can expect an increase on their winter heating bill.

National Heat Pump Rebate

In early October, the federal government highlighted the struggle Canadian households undergo during the cold winter months to warm their homes.

“Heating is one of the biggest expenses for Canadians during the winter months, and too often that money goes to the most expensive and least efficient ways to heat a home. Over seven million households in Canada still heat their homes with oil, propane, diesel, electric baseboards, or outdated furnaces,” the federal government wrote in a press release. “Our government is laser-focused on giving Canadians options to lower their energy costs. That’s why, as part of our National Electricity Strategy, we committed to help one million Canadian households make retrofits.”

The strategy intends to help up to 820,000 homes make the switch over to electric heat pumps. Eligible homes can receive up to $10,000 in rebates for the purchase of said pump.

The National Heat Pump Rebate will be available through an online portal. It is expected to launch sometime in early 2027.