U.S. Household Spending on Heating Seen Little Changed This Winter, EIA Says

By Anthony Harrup

Average household expenditures on heating this winter are likely to be similar to last year for most U.S. homes as lower fuel prices offset increased energy use with the weather forecast to be colder, the U.S. Energy Information Administration said Tuesday.

The exception is the Midwest where expenditures could rise between 2% and 11%, depending on the fuel used, as temperatures are expected to return to normal after an exceptionally mild 2023-2024 season, the EIA said in its winter fuels outlook.

"We assume this winter will be colder than the last winter across much of the country, especially in the Midwest. Our assumption is that temperatures this winter will be closer to average following a very mild winter last year," the EIA said.

Under the EIA's base case weather assumptions, homes heated by natural gas could expect to spend 1% more on average, at $602, for the November through March period. Homes heated by electricity would see a 2% increase, to $1,054; while spending by propane-heated homes will be similar to last winter, at $1,189; and in the case of homes using heating oil, 5% lower, at $1,410, the EIA said.

Colder-than-expected temperatures would increase the cost of heating and warmer temperatures would lower them.

Natural gas is used as the primary heating fuel in 45% of U.S. homes. Around 43% of homes use electricity, particularly in the South, while 5% of homes use propane and 4% use heating oil, mostly in the Upper Midwest and Northeast, the EIA said.

The EIA noted that natural gas and propane inventories are above the five-year-average levels, which has helped to keep prices down, while distillate-fuel stockpiles, which include heating oil, are slightly below average.

Write to Anthony Harrup at anthony.harrup@wsj.com

(END) Dow Jones Newswires

October 08, 2024 15:18 ET (19:18 GMT)

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