(ABC4) – Utah households can expect to spend more money this winter compared to last winter, according to the U.S. Energy Information Administration.
According to a report released on Wednesday, homes that specifically use propane or heating oil will see a sharper increase. The forecast price is based on the EIA’s expectations of high retail energy prices, which is already at multiyear highs.
Propane users will see a 54% increase, heating oil users will see a 43% increase, and natural gas users will see a 30% increase.
The report also states that the U.S. can expect a colder winter based off weather expectations from the National Oceanic and Atmospheric Administration’s forecast.
The reason why propane and heating oil users will pay more for heating is because those users buy supplies before winter and fall, so the EIA bases the consumers cost off of when they use the fuel, not when they purchase it.
The forecast expenditure is not limited to just heating. It reflects energy consumption across the charts such as electricity and natural gas.
The EIA says the main reason the wholesale prices of natural gas, crude oil, and petroleum products have risen is due in part because of fuel demands that have increased faster then supply. Largely due to economic recovery from the first year of the COVID-19 pandemic. The increases are being passed down from wholesale prices to consumers.