Average retail furnace oil prices in Canada have risen roughly 42% since before the Iran war began, and a federal heat pump rebate program is expected to launch in early 2027.
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Average retail prices for furnace oil in Canada have increased by almost a whole dollar per litre when comparing about $2.50/L now to about $1.76/L before the Iran war began, according to Natural Resources Canada figures cited in the report.
The report links the higher furnace oil costs to disruptions affecting production and distribution tied to the war, warning that many households could see an increase in their winter heating bills.
In early October, the federal government highlighted that heating is one of the biggest winter expenses for Canadians and said more than seven million households still heat with oil, propane, diesel, electric baseboards or outdated furnaces.
As part of its National Electricity Strategy, the government said it aims to help up to 820,000 homes make retrofits to electric heat pumps.
Eligible homes can receive up to $10,000 in rebates for the purchase of a heat pump, with the National Heat Pump Rebate expected to be available through an online portal launching in early 2027.
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