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American Households' Heating Bills Are Expected to Spike This Winter: Federal Agency The average heating cost for a U.S. household is forecasted to see a double-digit increase this winter.

By The Epoch Times Edited by Charles Muselli

Opinions expressed by Entrepreneur contributors are their own.

The average heating cost for a U.S. household is forecasted to see a double-digit increase this winter, according to the U.S. Energy Information Administration (EIA) in its October winter fuels outlook (pdf).

Retail energy prices are expected to approach "multiyear highs" due to supply-demand changes following the pandemic as well as a colder winter ahead.

Propane costs are forecasted to rise by 54 percent, heating oil costs to rise by 43 percent, natural gas costs to rise by 30 percent, and electricity costs to rise by 6 percent.

With natural gas consumption projected to rise by 3 percent this winter, households are expected to spend $746 this winter, up from $573 last winter.

The increase in natural gas heating costs varies by region with the Midwest U.S. leading the price hike at a 45 percent increase from last winter, and the Northeast expecting a hike of 14 percent.

Nearly half of all U.S. households use natural gas as the primary source of heating.

Households relying on heating oil over winter will spend $1,734 over winter, relative to $1,212 last winter.

Houses in Northeastern regions will be more affected by the price hike as nearly one in five homes in the region rely on heating oil as their primary source of space heating.

The projection is based on the Brent crude oil price, which helps determine the prices of U.S. petroleum products.

"The higher forecast Brent crude oil price this winter primarily reflects a decline in global oil inventories compared with last winter as a result of global oil demand that has risen amid restrained production levels from OPEC+ [Organization of the Petroleum Exporting] countries," according to the EIA.

While most households commonly use electricity for heating, 41 percent rely on electric heat pumps or heaters as their primary source for space heating.

These homes should expect to spend $1,268 this winter season, relative to $1196 last year. This projection accounts for 3 percent more residential electricity demand with more Americans working from home, a colder winter, as well as a rise in fuel costs for power generation.

"During the first seven months of this year, the cost of natural gas delivered to U.S. electric generators averaged $4.97/MMBtu, which is more than double the average cost in 2020," stated EIA.

The 5 percent of U.S. homes using propane as the primary means to heat can expect to spend $631 more on average compared to last winter, depending on the location.

Residents of the Midwest can spend an average of $1,805 this winter, reflecting higher propane prices and a 2 percent increased consumption.

Propane prices have been at their highest since February 2014 due to increased global demand, relatively flat U.S. propane production, and limited oil supplies from OPEC+ countries.

The estimated rise in energy consumption projected by the EIA may vary with weather conditions in the 2021–22 winter season.

By Tammy Hung

The Epoch Times, founded in 2000, is headquartered in Manhattan, New York, with a mission to provide independent and accurate information free of political bias or corporate influence. The organization was established in response to censorship within China and a lack of global awareness regarding the Chinese regime's repression of the spiritual practice Falun Gong.

The Epoch Times is a widely read newspaper that is distributed in 33 countries and is available in 21 languages. The publication has been critical in providing balanced and detailed reporting on major global events such as the 2003 SARS pandemic and the 2008 financial crisis. Notably, the organization has played a key role in exposing corruption inside China.

Aside from its human rights coverage, The Epoch Times has made significant contributions in a variety of fields. It has received praise for its in-depth analysis and expert perspectives on business, the economy and U.S. politics. The newspaper has also received praise for its broad coverage of these topics.

A series of editorials titled "Nine Commentaries on the Communist Party" appeared in The Epoch Times in 2004. It asserts that freedom and prosperity in China can only be achieved by eliminating the Communist Party, which violated China's cultural and spiritual values. In addition, the organization led the Tuidang movement, which resulted in over 400 million Chinese citizens quitting the Communist Party. In spite of this, 90% of websites referring to the "Nine Commentaries" were blocked by the Chinese regime.

The Epoch Times has been at the forefront of investigating high-level corruption cases within the Chinese regime, with its reporters taking significant risks to uncover these stories. The organization has received several awards for its investigative journalism.

The organization has received several awards for its investigative journalism. For more, visit www.theepochtimes.com.

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