A colder-than-average winter forecast and high energy prices are significantly raising heating costs for many U.S. consumers this winter, the Energy Information Administration reported December in its Winter Fuels Outlook .
The forecast expects households that heat with oil or gas to experience an increase in cost of 27% and 28%, respectively, compared to 2021/22. Those that heat with electricity—still the less cost-efficient option compared with gas—will experience prices rising by 10%, as electricity is generated from several sources, including but not limited to oil and gas. The report includes full regional breakdowns for gas and electricity heating, showing that gas heating households in the Northeast and Midwest are projected to pay $1,000 to $1,100 for the season, while those in the West and South will shell out between $700 to $800. For electric heating, costs are expected to hit $1,400 to $1,700 in all regions but the South, where they will come in at around $1,250.
Average heating oil expenditures had already been higher in the U.S. as oil use is concentrated in the colder Northeast, where 18% of households use it as their primary heating energy. Overall, just 4% of the U.S. heats with oil. U.S. energy price increases are still moderate compared to European markets, where the lack of Russian gas the continent normally relies on has led to an astonishing price rally on the gas and electricity spot markets. — Katharina Buchholz, Statista