When Are Home Heating Prices Expected to Go Down?

With winter weather hitting hard, homeowners in the U.S. are dealing with the challenge of home heating costs. Recent years have seen a remarkable jump in energy prices, leaving many searching for answers and relief. Learn what affects home heating prices, the recent trends we’ve seen and tips to keep your utility bills in check.

Different Kinds of Home Heating Fuel

A number of fuels are used to heat homes in the United States:

  • Natural gas heats 48% of American homes.
  • Heating oil heats 5% of homes.
  • Propane fuels another 5%.
  • Electricity warms 40% of U.S. homes. Fossil fuels remain the most used source for making electricity even with the increase in renewable energy sources like wind and solar. 

What Are the Key Influences on the Price of Fossil Fuels?

According to the above information, it’s clear that fossil fuels heat a large majority of North American households. Supply and demand is the number one factor causing price fluctuations. An increase in supply—triggered by higher production and storage rates—generally lowers prices, while a spike in demand—brought about by harsh weather, a thriving economy and rising rates for alternative fuels—can cause prices to climb.

Exactly How Much Has the Price of Natural Gas Gone Up?

Domestic natural gas production outpaced consumption starting in 2017, resulting in an overall price decline through 2018. But, demand has increased significantly recently across all sectors, causing natural gas prices to attain heights not seen in more than decade.

In 2022, the average wholesale cost of U.S. natural gas hit its highest point since 2008, attaining an average of $6.45 per million British thermal units (MMBtu). This huge spike represented a major leap of greater than 53% from the previous year, marking it as one of the sharpest annual increases on record.

A number of factors added to the erratic rise and uncertainty of natural gas prices last year. In early 2022, manufacturing hiccups caused by freeze-offs and a substantial draw from natural gas reserves nudged prices upward. Robust liquefied natural gas (LNG) exports to Europe and other countries, paired with an increase in domestic demand because of cold weather, stretched the price range even further.

In the spring of 2022, prices soared past $9/MMBtu, only to fall by 40% following the fire and subsequent shutdown at the Freeport LNG export terminal. This incident drastically cut U.S. LNG exports and redirected more natural gas toward storage. But, as the summer heat faded, prices climbed once more, hitting a high point in late August.

Going into the fall, a boost in natural gas production and higher-than-average injections into storage saw prices drop down closer to the five-year average. However, as temperatures decreased, the demand for heating caused prices to ascend once more.

When Will Prices Calm Down?

The variations in natural gas prices highlight the complicated interplay of factors influencing home heating fuel rates. As we look forward to the rest of the 2023-24 heating season, the market’s past behavior offers insights into future price trends and the prospect of cost-saving opportunities.

As of late 2023, prices have fallen from their previous highs because of robust production and relatively mild temperatures. Even though demand is still steady, forecasters suggest prices around $3.44/MMBtu this winter, offering some respite for individuals as we move through the heating season.

Tips to Reduce Your Heating Bill

No matter how you heat your home or what prices are like, you can take several helpful steps to increase energy efficiency and cut your heating costs. Here are a few ideas:

  • Seal drafty windows and doors with caulk and weatherstripping.
  • Use curtains to your advantage, throwing them open during the day for free light and heat and then pulling them back over the windows at night to insulate your windows.
  • Increase your attic insulation to prevent heat from rising out of your home.
  • Buy a smart thermostat that learns your habits and helps you save money.
  • Reduce the temperature on your thermostat when you’re out so you aren’t spending money to heat an empty house.
  • Don warmer clothes inside your residence so you don’t need to crank up the thermostat.
  • Plan seasonal furnace maintenance to keep your heating system in peak condition.
  • Set up a whole-house humidifier. Moist air feels warmer than dry air, so you feel more cozy at a lower temperature.

Bring Comfort Home in the U.S. with Service Experts Heating, Air Conditioning & Plumbing

Nothing is more important to the Service Experts Heating, Air Conditioning & Plumbing team than your comfort and well-being. Our heating solutions can also help bring down home heating costs, which is excellent news for your wallet. With ACE-certified technicians at the helm, you can expect quality, long-lasting remedies to all your comfort needs. Our 100% satisfaction guarantee means that if you’re not totally happy with our services, we promise to make things right.

As a company that prides itself on innovation, customer engagement and community involvement, you can trust Service Experts Heating, Air Conditioning & Plumbing to make a positive difference in your life and enjoyment in your home. For more insights into heating prices in the U.S. or personalized methods to help reduce your utility bills, get a hold of the professionals at Service Experts Heating, Air Conditioning & Plumbing. Call 866-397-3787 today to learn more.

  • Eight Frequent Heating Misconceptions Debunked

    There are lots of myths out there about home heating that create confusion and inefficient furnace use. It’s time to get the facts out there. Here, the heating professionals at Service Experts Heating, Air Conditioning & Plumbing debunk the eight most common myths to keep your home comfortable... Continue reading

  • Eight Ways to Upgrade Your HVAC System

    During the chilly days and nights in the U.S., there’s no better way to enhance your home’s comfort than with a few effective upgrades. It’s not only about keeping the house toasty warm as the snow begins to fall—it’s about maximizing efficiency and cleaning the very air you breathe.... Continue reading

  • How to Pick Out a Good HVAC System

    When considering keeping your home comfortable during every season, nothing is more critical than choosing the right heating, ventilation and air conditioning (HVAC) system. This determination impacts your daily comfort, monthly utility expenses and overall home efficiency. However, with so many... Continue reading