Though natural gas prices have fallen recently, this year's spike related to Russia's war on Ukraine will still mean higher household heating bills for Americans this winter.
The big picture: The Energy Information Administration forecasts that households that use natural gas as their primary home heating fuel — nearly half of all households — will see their average winter heating costs rise 28% this year to $931.
- Home heating oil users — just 4% of households, primarily in the northeast— will feel a similar sting, with heating bills up 27% to $2,354 this winter.
State of play: U.S. natural gas prices have tumbled in recent days, to below $6 per million British thermal units, as a warm October and maintenance-related shutdowns of LNG export terminals boosted domestic supplies.
- But, but, but: U.S. wholesale natural gas prices are still up 68% so far this year.
What to watch: These energy costs — largely attributable to disruption and uncertainty related to Russia's attack on Ukraine — are going to be a headache for politicians and policymakers trying to control inflation.
