Struggling families about to take another hit: Home heating costs projected to soar
The U.S. Energy Information Administration (EIA) recently projected that the cost of home heating for households will increase by 30 percent compared to last year, a level we have not seen since 2014. Energy costs have been low in recent years, allowing households to reallocate funds to other necessities. This winter, the higher prices will come as a shock to families that have become used to lower prices.
How high will energy costs get?
The cost of home heating varies widely depending on whether the household uses electricity, natural gas, or delivered fuels such as fuel oil or propane. The bad news is the cost of all fuels is expected to rise this winter, with natural gas and delivered fuels to see the biggest increase. Last year, a home that used natural gas paid about $573 in heating costs during the winter months. This year EIA estimates they will pay about $746. Heating oil costs will increase from $1,210 to $1,734, electricity from $1,192 to $1,268 and propane from $1,368 to $2,012.
For low-income families, the price increase is significant and could cause many to have to choose between heating their home this winter and paying for food, medicine and other essentials. About 29 percent of Americans who were surveyed had to reduce or forego expenses for basic household necessities to pay an energy bill in the last year, according to the U.S. Census Bureau's Household Pulse Survey. And that was before natural gas prices started to rise.
Why are prices so high?
The many reasons for these increased prices are out of the hands of consumers - and even the utilities that serve them. The supply of natural gas is down considerably due to increased demand for natural gas last summer by electric utilities, increased exports of natural gas, shortages in Europe, and rising demand for all fuels as a result of the improving economy. This is in addition to supply disruptions causing gas wells to shut down in the Gulf as a result of Hurricane Ida. With so many factors placing a strain on the supply, there is no one solution to increase supply and thereby lower prices.
https://www.msn.com/en-us/news/politics/struggling-families-about-to-take-another-hit-home-heating-costs-projected-to-soar/ar-AAPWj5B