U.S. home heating bills seen much higher this winter, EIA says By Reuters
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© Reuters. (Reuters) – The U.S. Energy Information Administration (EIA), projected Wednesday that consumers would spend more money heating their homes in October-March this year than they did last year, mainly due to the higher prices of energy commodities.
EIA stated that propane-using households will probably spend more this year than they did last.
EIA said it based its cost estimates on expectations of high retail energy prices — many are already at multiyear highs — and on forecasts for slightly colder weather this winter boosting household energy consumption over last year.
Due to coronavirus destruction, energy prices hit multiyear lows in the last year. In 2020, the average wholesale price for, which is the most widely used heating fuel in America, was $2.11 per 1,000 cubic feet (mcf), their lowest level in 25 years.
EIA stated that the main reason wholesale natural gas prices have increased is because fuel demand has risen faster than supply from their recent lows. This was partly due to economic recovery following the pandemic.
EIA estimates that depending on the location of people’s homes, residential prices this winter will increase to $11-14 per mcf (for natural gas), $2.50-3.50 for propane and $3.50 for heating oil.
This compares to last winter’s home costs which were around $10-12 for natural gas, $1.50-2.50 for propane and $2.50 for heating oil.
EIA stated that it would provide additional details in its Short-Term Energy Outlook, due to be released Wednesday.
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