EIA: Winter Heating Costs Expected To Be Lower This Season

Most U.S. households can expect lower heating expenditures this winter (October through March) compared with the past two winters, according to the U.S. Energy Information Agency’s Winter Fuels Outlook.

In most regions, the decline in expenditures is attributed to the combination of warmer weather-- about 13 percent warmer in the Northeast and lower fuel prices.

According to EIA, average household expenditures for homes heating primarily with natural gas will total $578 this winter, a $64 decline from last winter's average. Homes primarily using propane are expected to spend $1,437 this winter ($322 less). Homes heating primarily with heating oil are expected to spend $1,392 ($459 less). Homes heating primarily with electric heat are expected to spend $930 ($30 less).

Specifically the Northeast, including Pennsylvania, the report shows--

-- Natural gas consumption is expected to be down 11.3 percent for an estimated 6.4 percent cost savings.

-- Heating oil consumption to decline by 11.2 percent with a $24.8 percent reduction is cost, reflecting retail prices that are 47 cents/gal (15 percent) lower.

-- Electricity consumption is to decline by 5.9 percent for expected savings of 5.9 percent.

-- Household heating with propane in the Northeast are expected to spend an average of $342 (15 percent) less this winter, with average prices that are about 5 percent lower and consumption that is 11 percent lower than last winter.

-- Gasoline prices are expected to decline to an average of $2.03/gal in December 2015. EIA forecasts U.S. regular gasoline retail prices to average $2.38/gal in 2016.

The average household winter heating fuel expenditures summarized above provide a broad guide to changes compared with last winter. However, fuel expenditures for each household are highly dependent on the size and energy efficiency of individual homes and their heating equipment, thermostat settings, local weather conditions, and market size.

For more details, visit the EIA Winter Fuels Outlook webpage.  Click Here for a copy of the detailed report.

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EIA: Winter Heating Costs Will Drop, Lower Prices, Warmer Weather