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Filed Under: Business

If you think gas is expensive, wait until you see how much it’ll cost to heat your home this winter

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As we approach the end of the year, from oil to natural gas, it appears a perfect storm is brewing for many Americans to experience an expensive winter. The U.S. Energy Information Administration released its short-term energy outlook Wednesday.

“We forecast that average U.S. household expenditures for all major home heating fuels will increase significantly this winter primarily because of higher expected fuel costs as well as more consumption of energy due to a colder winter,” the administration said in its outlook. “Average increases vary by fuel, region, and weather assumptions.”

The administration is expecting the following increases in the cost to heat your home this winter:

  • 54 percent if you heat by propane.
  • 43 percent if you heat by oil.
  • 30 percent if you heat by natural gas.
  • 6 percent if you heat by electricity.

This information is also published in the administration’s winter fuels outlook.

“We expect space heating demand to generally be higher this winter based on forecasts from the National Oceanic and Atmospheric Administration (NOAA) that U.S. average heating degree days will be 3% higher than last winter,” the administration said in its short term outlook.

A potential omen of an expensive winter can be seen with gas prices. This week’s national average is $3.27, which is the highest it’s been in seven years. On-highway diesel fuel prices were at $3.59, which is $1.19 high than it was at this point last year.

The increase in prices comes amid record levels of inflation. On Thursday, the Labor Department reported its producer price index rose 8.6 percent in the last year. That’s the largest year-to-year increase since wholesale prices were first calculated in 2010. It broke the previous record of 8.3 percent set the previous month.

That report came a day after the department reported consumer prices have risen 5.4 percent in the last year. This increase is the largest year-over-year rise in inflation since 2008.

The inflation is being blamed in part on supply chain bottlenecks on both coasts. Also on Wednesday, the White House announced it worked out a deal with the Port of Los Angeles to turn it into a 24-hour, seven-day-a-week operation.

Simone Del Rosario: YOU’RE PROBABLY ALREADY FEELING THE PINCH AT THE PUMP.

THIS WEEK THE NATIONAL AVERAGE FOR A GALLON OF GAS IS $3.27 – A 7 YEAR HIGH. 

BUT THAT’S JUST THE START OF WHAT’S EXPECTED TO BE A LONG, COLD, EXPENSIVE WINTER. 

WITH OIL PRICES ALREADY SKYROCKETING, EXPERTS SAY COLD WEATHER COULD SNAP US INTO AN ENERGY CRISIS WHEN WE TRY TO TURN UP THE HEAT AT HOME. 

HERE ARE THE COLD HARD FACTS ABOUT YOUR WINTER HEATING BILLS. 

THE U-S ENERGY INFORMATION ADMINISTRATION SAYS AMERICANS WILL SPEND A LOT MORE THIS WINTER. PRICES WILL BE HIGHER – *AND IT’S EXPECTED TO BE COLDER. 

FOR THE HALF OF AMERICANS WHO USE NATURAL GAS TO HEAT THEIR HOMES – THE E-I-A SAYS THEY’LL BE SPENDING 30 PERCENT MORE THAN LAST WINTER – UP TO 50 PERCENT MORE IF IT’S AS COLD AS EXPECTED.

PEOPLE USING PROPANE – THOSE BILLS ARE LIKELY GOING UP 54 PERCENT.

FOR HEATING OIL – IT’S EXPECTED TO BE 43 PERCENT MORE EXPENSIVE. 

ONLY HOUSEHOLDS USING ELECTRICITY FOR HEAT WILL AVOID THE HUGE PRICE HIKES THIS WINTER.

I’M SIMONE DEL ROSARIO FROM NEW YORK IT’S JUST BUSINESS.

As we approach the end of the year, from oil to natural gas, it appears a perfect storm is brewing for many Americans to experience an expensive winter. The U.S. Energy Information Administration released its short-term energy outlook Wednesday.

“We forecast that average U.S. household expenditures for all major home heating fuels will increase significantly this winter primarily because of higher expected fuel costs as well as more consumption of energy due to a colder winter,” the administration said in its outlook. “Average increases vary by fuel, region, and weather assumptions.”

The administration is expecting the following increases in the cost to heat your home this winter:

  • 54 percent if you heat by propane.
  • 43 percent if you heat by oil.
  • 30 percent if you heat by natural gas.
  • 6 percent if you heat by electricity.

This information is also published in the administration’s winter fuels outlook.

“We expect space heating demand to generally be higher this winter based on forecasts from the National Oceanic and Atmospheric Administration (NOAA) that U.S. average heating degree days will be 3% higher than last winter,” the administration said in its short term outlook.

A potential omen of an expensive winter can be seen with gas prices. This week’s national average is $3.27, which is the highest it’s been in seven years. On-highway diesel fuel prices were at $3.59, which is $1.19 high than it was at this point last year.

The increase in prices comes amid record levels of inflation. On Thursday, the Labor Department reported its producer price index rose 8.6 percent in the last year. That’s the largest year-to-year increase since wholesale prices were first calculated in 2010. It broke the previous record of 8.3 percent set the previous month.

That report came a day after the department reported consumer prices have risen 5.4 percent in the last year. This increase is the largest year-over-year rise in inflation since 2008.

The inflation is being blamed in part on supply chain bottlenecks on both coasts. Also on Wednesday, the White House announced it worked out a deal with the Port of Los Angeles to turn it into a 24-hour, seven-day-a-week operation.

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