HUDSON, N.H. – Janice Pack is bundling up these days – her thermostat set at 60 degrees – to keep up with rising fuel oil costs.

“I need to make this tank of oil last as long as I can,” she said.

The rising costs of heating oil and gasoline have forced the 44-year-old single mother to cut corners nearly everywhere.

Entertainment these days means watching TV because there isn’t enough money to go to the movies. Pack recently went apple picking, but didn’t fill up the bag because it would’ve cost twice as much. Going out to eat doesn’t happen anymore, she said.

“We used to get a pizza every payday,” said Pack, who works two jobs to make ends meet.

Not only are $55-a-barrel oil costs and $2-a-gallon gasoline costs making headlines, but they’re also affecting the lives of local residents and the bottom line of many businesses.

Americans are expected to see significant increases in their home-heating bills this winter, and they’ve already spent 16 percent more on gasoline in the first nine months of this year than they did last year, according to the federal Energy Department.

Crude oil traded at $54.95 a barrel Wednesday on the New York Mercantile Exchange; heating oil increased 4.85 cents last week, to $1.557 a gallon – 89 percent higher than last year.

The average price of heating oil last month in Southern New Hampshire was $1.57 a gallon, according to NewEnglandOil.com.

Pack filled her oil tank earlier this summer when prices were lower. She even prepaid $200 on her account to get the “pre-buy” pricing. Now she fears what’s in her tank will only cover a third to a half of the oil she’ll need to heat her home this winter, even at 60 degrees.

“So my daughter and I will continue to layer up and make the best of it,” Pack said.

Rising demand is a major factor in the high prices.

Two years ago, there were 6 million spare barrels of crude oil out of 80 million barrels used worldwide. Now, with the increases in demand in China and some other parts of Asia, the excess oil capacity is down to fewer than 1 million barrels a day, or just 1 percent of daily demand.

Last October, the wholesale price of heating oil was about 80 cents a gallon.

“If you are just filling up your tank with heating oil, you can expect to pay close to 70 cents a gallon more than you did last year,” said James Williams, president of WTRG Economics, an Arkansas-based consulting company for energy producers.

To save on heating costs, John McGondel, 49, of Derry said he heats his home with wood.

Instead of driving to the mall to shop, he and his wife are doing all of their shopping online. He’s also doing electronic banking to save a trip to the post office and the price of a stamp. Anything to save him a trip to the gas station.

Transportation businesses are among the many industries concerned about rising fuel prices. Law Motor Freight Co. of Nashua was recently forced to implement diesel fuel surcharges as high as 10 percent to all customers.

“I’ve been here 12 years and this is the first time we’ve had to put one in place,” said Brian Law, the company’s vice president.

Last year, the company locked in at $1.32 per gallon for diesel fuel. Lock-ins were not available this year, Law said. He paid $2.09 last week.