Energy Costs Expected to Rise This Winter

December 1, 2011

It’s getting costlier for home owners to heat their home, particularly if they rely on oil during the winter heating season. The cost of heating a home with oil is expected to increase 10 percent this year to $2,535, on average, according to the U.S. Energy Information Administration. 

The cost of heating with oil has continued to soar: Compared to two years ago, heating with oil has increased 45 percent when the average bill was $1,752.

Many homes no longer rely on the use of heating oil, however, a large proportion of homes that still do are found in the Northeast, known for long, cold winters. 

For others, using natural gas has proved to be much more affordable, but in places like the Northeast the infrastructure just isn’t there, Neil Gamson, an economist with EIA, told CNNMoney. Prices for heating with natural gas are projected to remain mostly stable over the next few years. Gas prices are expected to rise 2.2 percent higher this winter but are nearly 18 percent lower than two years ago, with the average home owner paying about $732 to heat their home with gas, according to an article at CNNMoney.

Meanwhile, homes that use electricity for heating are expected to see stable pricing as well this year, costing an average of $954 this winter, which is an $8 decrease from last year.

Source: “A Costly Winter Ahead for Home Heating Oil Users,” CNNMoney (Dec. 1, 2011)