When one hand gives, the other taketh away. That’s how some consumers may feel about energy prices these days as high prices seem to just move from one part of the budget to another instead of disappearing.
U.S. households are expected to spend more on energy this October through March than recent winters due to a combination of higher fuel prices and increased heating demand because of forecasts for slightly colder weather than last year, the Energy Information Administration (EIA) said last week.
Bills for every type of fuel are expected to rise, with propane coming in at the low end with a 5% spike while natural gas could soar 28%. If winter proves 10% colder than expected, natural gas bills could surge 51%, EIA said. And even if the winter is 10% warmer, only propane prices would decrease from last year, down 12%, forecasts showed.
This all comes just as people have felt some relief at the pump, which means no inflationary relief for the holidays.
“This holiday, people are hoping for coal in their stockings because utility bills will go way up and pressure their finances, and the last thing they can tolerate is white snow,” said Jonathan Walker, executive director of Elevate’s Center for the New Middle Class, which researches behaviors and needs of financially strained Americans.
How much more will utility bills be?
Nearly half of U.S. households rely primarily on natural gas for heating, and they are forecast to spend about $930 this winter, 28% more than…
