Last modified: Saturday, December 22, 2007 1:00 AM EST Cost of fuel brings a big chill to the area BY GLORIA LaBOUNTY SUN CHRONICLE STAFF ATTLEBORO - Area residents are heading into the new year feeling the double whammy of spiking prices for gasoline to run their cars and oil to heat their homes. As winter officially hit today, industry watchers are predicting the average family heating with oil will spend about $1,000 more than in previous years. Federal agencies estimated heating oil costs would rise about 22 percent this winter and that the price of natural gas would jump about 10 percent. Closer to home, statistics compiled by the Massachusetts Division of Energy Resources showed that by Nov. 6, heating oil already was $3.05 a gallon, a record-high average and the first time it has risen above $3. Overall, the state-wide average for heating oil was $3.27 as of Dec. 18, compared with $2.42 at the same time last year; propane was at $2.77, compared with $2.24 a year ago. The news was not much better at the gas pumps, where Massachusetts drivers were paying an average of $3.02 for regular gasoline this week, compared with $2.30 a year ago. Shocked by the hikes, homeowners were scrambling for ways to save energy, and low-income residents were searching for relief by applying for fuel assistance in ever greater numbers. In response to the need, state officials allocated an additional $15 million for fuel assistance to needy households, and federal officials added $409 million to the $2.6 billion energy assistance program that helps low-income Americans. Massachusetts was expected to get about $82 million of those federal funds. In addition, local agencies were fielding increasing calls for help, and food pantries and soup kitchens were seeing lots of new faces as people looked for free food so they could use their limited funds to pay heating and utility bills. "The crunch is coming for everyone," said Dot Embree, director of the Attleboro Area Council of Churches and president of the Attleboro Area Homeless Coalition. "We haven't even seen the tip of the iceberg." Michael Ferrante, president of the Massachusetts Oilheat Council, said homeowners were trying to conserve by buttoning up their houses, turning down the thermostats and wearing more sweaters. His council blames the skyrocketing costs to higher crude oil prices, increased demand and speculation by traders and commodities brokers. For consumers, the pre-holiday snow storms and plunge in temperatures made the outlook even gloomier for the cold months still to come in 2008. Even with increased federal assistance, predictions were holding for a very tough winter.