A colder-than-average winter forecast, combined with high energy prices, are expected to significantly raise heating costs for many U.S. customers this coming winter season, the Energy Information Administration has reported.
As the invasion of Ukraine by Russia persists, energy produces continue to cause turmoil on global markets. Oil price fluctuations are the result, and customers are not only paying more at the pump, but they’re also paying more for energy costs at home.
A forecast from the Energy Information Administration released in October expects households that heat with oil or gas to experience an increase in cost of 27% and 28%, respectively, compared to 2021. Those who heat with electricity — still the less cost-efficient option compared with gas — will experience a 10% uptick in price.
The report includes full regional breakdowns for gas and electricity heating, showing that gas heating households in the Northeast are projected to pay $1,000-$1,100 for the season.
Average heating oil expenditures had already been higher in the U.S. as oil use is concentrated in the colder Northeast, where 18% of households use it as their primary heating energy. Overall, just 4% of the U.S. heats with oil.
U.S. energy price increases are still moderate compared to European markets, where the lack of Russian gas the continent normally relies on has led to an astonishing price rally.
Related: The OPEC+ Alliance Announce Massive Cuts to Oil Output
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