The Energy Information Agency (EIA) estimates that 47% of households use natural gas as their primary source of heating. It is therefore logical that in winter, when more heat is needed to keep things comfortably warm indoors, the natural gas bill will rise. Cold weather and winter driving conditions can significantly reduce fuel economy. Households can expect to spend more money to heat their homes this winter compared to last year, federal officials announced.
A report released Wednesday by the Energy Information Administration predicts that home heating costs will rise as fuel prices are rising and fuel demand has increased during the previous winter. Many energy prices fell sharply last winter due to the sharp drop in demand caused by the COVID-19 pandemic. But the agency said prices have since recovered, partly due to economic recovery, and in some cases have reached multi-year highs. All residential consumers should expect to pay more for heating, but officials say the type of fuel you use will determine how much extra money you have to shell out.
Far fewer homes keep their homes warm with heating fuel or propane, but their costs are expected to increase even more. Heating fuel users will pay 43% more on average than last winter, while propane users will pay 54% more. The Energy Information Administration said those estimates were based on weather forecasts from the National Oceanic and Atmospheric Administration, which forecasts a colder winter. But the report notes that, even if this winter is a little warmer than expected, all residential consumers using any of those four fuels will continue to pay more for heating.
In a statement, Anne Bradbury, CEO of the American Exploration %26 Production Council, criticized the Biden administration for pursuing policies that, she said, made it more difficult for the U.S. UU. Producers to supply oil and natural gas. But the Energy Information Administration said the main reason for rising energy prices is that demand for fuel has skyrocketed from recent lows faster than producers have increased supply.
Rising energy prices are just the latest example of how inflation has been steadily growing as the global economy restores after the first year and a half of the pandemic. On Wednesday, the department of labor reported that consumer prices rose 5.4% in the past 12 months, matching the highest level of inflation seen in the U.S. Climate is an area where you have less control. If winter brings historic lows and prolonged cold spells, you'll consume more propane than if the season is medium or mild.
Other variables will be different from one house to another. Is your home well insulated and less prone to drafts or heat loss? Is your heating equipment new, well-maintained and highly efficient or not? Do you have a propane fireplace or stove that you use most often when it's cold?. You can save money on your gas bill without spending anything out of pocket by simply adjusting your habits around the house. But you could be using more natural gas than necessary and paying higher bills, due to other things around the house.
After all, heating your home in winter can come at a steep price, especially if you haven't taken steps to prepare your home for the cold. This means that in winter, when you need natural gas to heat your home, you could be competing for that natural gas against electric power plants that also need natural gas to run. Due to this low supply of natural gas throughout the year, natural gas recently surpassed coal as the largest source of electricity generation nationwide, according to the Energy Information Administration. Strategically programming the thermostat can help reduce the amount of natural gas used to heat your home.
That means millions of households can benefit from understanding what increases their natural gas bill in winter and how to control the cost despite the cold. We help consumers avoid fluctuating tariffs by offering fixed rates on affordable 100% carbon neutral natural gas tariffs possible. If you want information on how natural gas is processed and delivered to your home, you can watch this informative video on how the gas pipeline works. Therefore, it stands to reason that in winter, when more heat is needed to keep things comfortably warm inside, the natural gas bill will increase.
A great way to use technology to lower your gas bill is to install a smart thermostat to keep your home at a comfortable, energy-saving temperature. We replaced a 20-year-old oven with a new one (14 seer) and replaced an old water heater that used to run on propane with a natural gas one. Using the following tips will not only save energy (and money), but it will also keep you warm and comfortable all winter long. Keep in mind that these estimates are annual averages, but these appliances are likely to consume more of your total propane during the winter months compared to the other seasons of the year.