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American households have faced higher energy prices this year and as colder weather approaches this winter, they may end up paying higher heating bills for their homes depending on the type of fuel they use.
The Energy Information Administration (EIA), the Department of Energy’s main analytical agency, released its winter fuel outlook on Tuesday, which said the agency’s “expectations this season vary due to diverging trends in energy prices among fuels and regional variations in forecast temperatures.”
“We expect households that use natural gas and propane as their primary fuel — together, about half of all U.S. households — will have lower energy expenditures this winter, primarily due to lower fuel costs,” the EIA wrote.
The Energy Information Administration (EIA), the Energy Department’s main analytical agency, released its winter fuel outlook on Tuesday. (Anibal Martel/Anadolu via Getty Images)
“We expect higher energy costs for households whose main fuel is electricity or heating oil due to higher fuel prices,” the agency added.
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EIA data shows that homes heated with natural gas will see a 9% reduction in spending compared to a year ago, with some forecast uncertainty in the case of weather all pointing to a decrease.
The West is expected to see a 7% increase in natural gas spending compared to last winter, while other regions will see declines in the 10-15% range.
EIA data shows that homes heated with natural gas will see a 9% reduction in spending compared to a year ago. (Rebecca Droke/AFP via Getty Images)
Propane-heated homes will spend 3% less according to the forecast, with a range from a 10% decrease to an increase of about 8%. Spending is expected in the South compared to last winter, while the Midwest and Northeast will be down 4% and 15%, respectively.
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Heating oil spending is projected to increase 21% nationally according to the EIA outlook, within an uncertainty range of about 15% to 35%.
Heating oil spending is projected to increase 21% nationally according to the EIA outlook. (Matt Stone/MediaNews Group/Boston Herald via Getty Images)
Homes heated by electricity are expected to rise by 4% this winter, with some uncertainty pointing to a single-digit increase.
The West is expected to increase 9% from last season, while the South and Midwest will each experience a 3% increase, and the Northeast will decline 3%, according to the outlook.
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The EIA said that while it expects national average temperatures to be about the same as last year, the forecast assumes warmer temperatures in the Northeast after the region experienced a relatively cold winter last year, with cooler temperatures in the West after an unusually warm winter a year ago.
Forecasts also assume the Midwest and South will experience similar temperatures as last year.
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The agency noted that the National Oceanic and Atmospheric Administration (NOAA) has “identified a strong El Niño pattern this winter, which may cause large temperature variations from our forecast.”