Bird’s eye view of an average gas station during the early morning hours during gas rationing. National Archives photo 555457
The price of gas and oil in the United States is rising. The Israeli and US bombings of Iran, combined with the closing of the Strait of Hormuz, have triggered oil price increases of around 50%.
These price increases are hitting home in Vermont. Before the war in Iran, gasoline prices in Vermont were at $3.00/gallon, resulting in just under $160 in gasoline costs a month for the average Vermont driver. As of March 20th, the average price of gasoline was $3.78/gallon, resulting in $200 in gasoline costs a month. Heating oil costs are also rising across the country and here in Vermont.
The 1970s Oil Crisis
According to the International Energy Agency (IEA)–an intergovernmental organization that analyzes the global energy sector– the war in Iran is causing the largest ever oil disruption. Analysts are now comparing our current global situation to the 1970s energy crisis, which nearly quadrupled the cost of oil in a matter of months. Gas stations rationed supplies, and some European countries banned driving on Sundays. The economic damage from the 1970s oil shock lasted years after it ended.
When the 1973 embargo hit, Americans responded by buying smaller, more fuel-efficient cars. The embargo also helped drive interest in renewable energy and electric vehicles. Some of the largest car manufacturers in the world, like Ford and GM, began more actively researching EVs.
Global Conflict Makes Renewable Energy More Appealing
Fossil fuel prices fluctuate dramatically because they are traded on a global market. We have historically seen conflicts, like Russia’s invasion of Ukraine, cause drastic swings in price. Renewable energy like wind and solar, on the other hand, can be locally generated, insulating consumers from price swings.
Today, rising oil prices due to the war in Iran are already spurring some consumers to switch to fossil fuel-free technology. Fuel prices in Europe are driving a wave of interest in EVs– sales are up nearly 30% for new electric cars since the beginning of the war, according to Autotrader. In India, sales of induction stoves are spiking as access to LPG cooking gas becomes more limited.
What Can You Do?
Rising costs are stressful, and stress can be paralyzing. We want to help you face rising costs head-on by helping you map out a path for your home’s energy future.
Join us on Tuesday, April 14th, 6 PM at the Normal Williams Public Library for a free Green Energy Planning Workshop. Efficiency Vermont will offer a brief presentation on popular technologies and incentives, then take questions regarding your home. Learn about Vermont’s free weatherization program, Efficiency Vermont’s $9,500 rebate on insulation and air sealing, rebates and incentives for heat pumps and heat pump hot water heaters, and Sustainable Woodstock’s energy efficiency grant offerings!
When: Tuesday, Apr 14th from 6 pm to 7 pm
Where: Norman Williams Public Library Woodstock, VT
REGISTER HERE