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Space-Heating Fuel Costs To Drop This Winter

October 12, 2009
According to the EIA’s short-term energy and winter fuels outlook, the average household expenditures for space-heating fuels will decrease $84, or 8 percent, from last winter.

According to the EIA’s short-term energy and winter fuels outlook, it projects the average household expenditures for space-heating fuels to be $960 this winter (Oct. 1 to March 31), a decrease of $84, or 8 percent, from last winter.

“This forecast principally reflects lower fuel prices, although expected slightly milder weather than last winter will also contribute to lower fuel use in many areas,” the report stated. 

The largest expenditure decreases are in households using natural gas and propane, projected at 12 and 14 percent, respectively. EIA expects households heating primarily with heating oil to spend an average of $40 (2 percent) less this winter. 

About 7 percent of U.S. households depend on heating oil for winter fuel. The Northeast accounts for 80 percent of heating fuel consumption. In that region, the average household is projected to spend 3 percent less ($60) than last winter as a result of a 2-percent decrease in consumption, with regional prices about 1 percent less than last winter. 

EIA projects residential heating oil prices in the Northeast to average about $2.64 per gallon during the winter season, 2 cents less than last winter. For comparison, prices averaged $3.31 in the winter of 2007-08.

Source: Energy Information Administration

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