US household winter heating costs to see double-digit growth: EIA
Energy prices climbed 1.3% in September and are now up 24.8% over the past year
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The Energy Information Administration has warned that the cost of heating oil is expected to rise approximately 43% compared to last year to due to "higher expected fuel costs as well as more consumption of energy due to a colder winter."
Meanwhile, the agency expects propane costs to rise by 54%, natural gas costs to rise by 30% and electricity costs to rise by 6%.
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According to the EIA's winter fuels outlook, the average U.S. household is expected to spend an average of $1,734 during the 2021-2022 winter season if using heating oil to heat their homes, up from $1,210 last year, $1,268 if using electricity, up from $1,192 last year, and $746 if using natural gas, up from $572 last year.
Depending on where people live, the EIA said residential costs will rise between roughly $11 to $14 per thousand cubic feet (mcf) for natural gas, compared to around $7 to 12 per mcf for natural gas last year, about $2.50-$3.50 per gallon for propane, compared to around $1.50-$2.50 per gallon for propane last year, and almost $3.50 per gallon for heating oil, compared to $2.50 per gallon for heating oil last year.
The nearly half of U.S. households that use natural gas could potentially spend 50% more in a colder-than-average winter and 22% more in a warmer-than-average winter, the 41% of U.S. households using electricity could spend 15% more in a colder winter and 4% more in a warmer winter, the 5% of households using propane could spend 94% more in a colder winter and 29% more in a warmer winter, and the 4% of households using heating oil will could spend 59% more in a colder winter and 30% more in a warmer winter.
"As we have moved beyond what we expect to be the deepest part of the pandemic-related economic downturn, growth in energy demand has generally outpaced growth in supply," EIA acting Administrator Steve Nalley said. "These dynamics are raising energy prices around the world."
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The forecast comes as the consumer price index rose 5.4% year over year in September, according to the Labor Department, matching July's reading for the hottest print since 2008. Prices increased 0.4% month over month.
Energy prices climbed 1.3% in September and are now up 24.8% over the past year. Food prices, meanwhile, jumped 0.9% last month and are now up 4.6% annually. Prices for meats, poultry, fish, and eggs, have climbed 10.5% this year while beef prices are up 17.6%. Core prices, which exclude food and energy, ticked up 0.2% in September and 4% annually, matching analysts' expectations.
FOX Business' Jonathan Garber contributed to this report