The heating bills for American households are set to soar this year, adding to the inflation woes of many American families.
“We expect that households across the United States will spend more on energy this winter compared with the past several winters because of these higher energy prices and because we assume a slightly colder winter than last year in much of the United States,” a recent Department of Energy study said.
The Energy Department produces a base case forecast alongside forecasts for a winter that is 10 percent warmer and 10 percent colder.
“The November update of our Winter Fuels Outlook forecasts that heating bills for U.S. residences are likely to increase between 6% and 46% this winter, depending on the fuel used for home heating. We forecast these costs will increase much more if the winter is colder than expected,” Stephen Nalley, Energy Information Aadministration acting administrator, said Tuesday during testimony before the Senate Energy and Natural Resources Committee.
Heating oil is set to rise 39 percent compared with last winter in the base case. The warmer scenario sees heating oil rising 26 percent. In a colder winter, oil would rise by 54 percent, the study found.
Natural gas prices are 29 percent higher than last winter in the base case, 22 percent higher in the warmer case, and 48 percent higher in the cold winter.
Propane rises 46 percent in the base case, 22 percent in a warmer weather, and 86 percent in a colder winter.
Electricity prices would rise 6 percent in the base case, three percent if warmer, and 14 percent if colder.
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