Long Island energy costs spike in February amid extended cold snap

The cost of energy in the metropolitan area, particularly electricity, home heating oil and natural gas, rose in February compared with a year earlier as Long Islanders and others tried to stay warm in the face of unusually cold temperatures.

Energy prices are up substantially more this month as the cost of gasoline climbs in response to the war in Iran, economists said Wednesday, adding that pump prices weren’t a factor last month. They were down 4.3% from February 2025.

The federal Bureau of Labor Statistics reported its energy index for the 25-county region, that includes Long Island, increased 5% in February compared with a year earlier. That’s a faster pace than January’s 2.7% but slower than December’s 6.1%.

The economists said rising prices can cause consumers to reduce their spending, which in turn can hurt economic growth. Consumer spending accounts for roughly 70% of economic activity on Long Island and nationwide, they said.

The energy index, which is released with the consumer price index, tracks the cost of natural gas, electricity, home heating oil, kerosene, firewood and gasoline — but only the latter’s price is broken out, according to bureau economist Georgia Wright.

Frigid temperatures and record snowfall are largely to blame for the energy index’s rise last month.

"Winter Storm Fern [in late January] led to a massive jump in heating demand, while extreme freezing temperatures blocked the flow of fuel leading to a significant decline in the natural gas supply," John A. Rizzo, an economist and Stony Brook University professor, said.

"The war in Iran will only make matters worse" because oil production and transportation in the Middle East have been disrupted," Rizzo added. "Rising energy prices exert an inflationary effect throughout the economy" with transportation costs for goods climbing, he said.

At the Stop & Shop supermarket in Long Beach, retiree Maureen O’Shea, 71, said her most recent electric bill was $233.66 for the month ended Feb. 10, or 35% higher than the same time last year.

"My one-bedroom apartment is drafty, causing me to turn up the thermostat. ... What am I to do?" O’Shea said, showing a Newsday reporter her checkbook entries for last month and February 2025 while taking a break from loading groceries into her car.

"Everything is going up except my Social Security, and with this war, it’s going to be harder to make ends meet. All I can do is cut back some more," said O’Shea, who worked at Macy’s and other department stores for decades.

Energy wasn't the only commodity whose price rose last month.

The cost of fruits and vegetables climbed 7.2% in February compared with a year earlier. Nonalcoholic beverages and household furnishings were up 7.1% and 4.8%, respectively, according to the statistics bureau.

The increases were partially offset by declines in the cost of gasoline, recreation and used automobiles. Recreation was down 2.6% and used automobiles were down 3.5%.

The overall price index for the New York-area rose 3.2% last month compared with February 2025. That was a faster pace than January’s 2.9%.

The national index climbed at a slower rate: 2.4% in February and January, year-over-year.

Still, economist Scott Anderson of BMO Capital Markets in Toronto, said some of the details left "my stomach a little queasy." He cited nationwide increases in the cost of airfares, housing and health care.

"This is likely to be the best we are going to see on the U.S. inflation front for a while, with the outbreak of war with Iran and the effective closure of the Strait of Hormuz spiking energy prices," Anderson wrote in a note to investors, alluding to the waterway south of Iran through which about a quarter of the seaborne oil trade passes.