Friday, October 26

As the temperatures drop, heating costs rise

As the temperatures drop, heating costs rise

Jeffrey Hamilton / Getty Images

With winter coming on and the temperatures fall U.S. homeowners will see their heating bills to rise in the coming months.

By Jonathan Fahey associated press
Americans to heat their homes this winter, feel that something felt they are not much of last year pay more: cold.

Fuel prices are relatively stable, but customers need to use more energy, keep warm than even a year ago after the annual winter fuels Outlook by the energy information administration of the U.S. Department of energy.

Last winter was the warmest on record. Temperatures this year are expected to be close to normal.

Creation of heating bills for heating oil customers 20 percent, 15 percent for natural gas customers, rising 13 percent for propane customers and 5 percent for electricity customers, the energy information Administration announced today.

Fuel oil, customers should oil prices always pay the highest heating. This will lead record heating bills, with an average of $2,494. That's high, set in the winter of 2010 almost $200 more than the previous.

Customers who use natural gas, electricity or propane will see lower bills, as they have in the previous typical winters - also with the increase in comparison with the previous year - because the prices are relatively low.

"It's two different worlds." "For most families is, that this still goes on an affordable year, with the exception of those who use oil heat," said Mark Wolfe, Executive Director of the national energy assistance Directors Association. "For them, it will be very difficult."

Only 6 percent of the country's households use heating oil, but they tend to in some of the coldest parts of the country, where the heating requirements are high. This is mainly in the Northeast. Natural gas use for heat and 38 percent electricity about half of the houses in the region. Five per cent of households use propane and 2 percent wood.

Natural gas prices are $10.32 per thousand cubic metres average. This is 0.8% higher than in the previous year but 13 percent below the five year average. Electricity prices will fall 2.3 percent to 11.4 cents per kilowatt hour. Propane prices fall 8 percent in the Midwest to $2.02 per gallon and 13 percent in the northeast to $2.95 per gallon.

Prices are relatively low, due to a dramatic increase in domestic natural gas production in the last five years natural gas, propane and electricity. Natural gas is used to power generate about one-third of the country, and it is instrumental in determining the price of electricity. Recently, drills have increased production of so-called natural gas liquids including propane.

Heating oil is a record-high of $3.80 per gallon average, because it is made from petroleum. Crude oil costs worldwide and has stayed high due to increasing world demand, fears of supply disruptions in the Middle East and economic programmes of central banks around the world, the promotion of investment in oil and other commodities.

But the year's increase is because forecasters expect a typical winter. East of the Rocky Mountains, weather is expected to be about 2 percent warmer than normal but 20 to 27 percent colder than last year. In the West, temperatures were closer to normal last year so the expected increase in for this winter is only 1 percent.

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