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Heating costs are set to skyrocket as inflation hits energy prices | Jobs

New York (AP) — Be prepared for heating costs this winter, like everything else, to be significantly higher.

With kerosene, natural gas and other fuel prices skyrocketing globally, the US government said Wednesday that it expects home heating costs to jump 54% compared to last winter.

The most exponential growth could be in propane-using homes, which make up only 5% of US households, but significant growth can be seen in other homes as well.

Homes that use natural gas, which accounts for nearly half of all US households, could spend $ 746 this winter, 30% more than it was a year ago. It has the potential to maximize heating costs for them this winter since the winter of 2008-2009.

The second most typical source of heat for residential use is electricity, which accounts for 41% of the country, and these households could grow 6% to $ 1,268. For homes that use kerosene, which accounts for 4% of the country, a 43% increase (over $ 500) could be $ 1,734.

This winter is expected to be a little colder than last year nationwide. This means that people may be burning more fuel to keep them warm, and in addition they will pay more for each bit of fuel. If winter gets colder than expected, heating costs can be higher than expected and vice versa.

The US Energy Information Administration’s forecast is the latest to remind us of rising inflation across the global economy. Earlier Wednesday, the government released another report showing that US consumer prices in September were 5.4% higher than they were a year ago. This is the hottest inflation since 2008, with economic recovery and supply chain disruptions pushing up prices for everything from cars to groceries.

Rising prices have hit almost every household, and so far most workers’ salary increases have not caught up with inflation. The average hourly wage of workers increased by 4.6% last month from a year ago.

However, higher heating costs will have a particularly significant impact on low-income households.

“After the beatings of people being involved in a pandemic, it’s like this: what’s next?” Carol Hardison, Chief Executive Officer, said.

She said households coming in for help recently have about twice as many unpaid invoices as they did before the pandemic. They are struggling with more expensive housing costs, higher medical costs, and sometimes shorter working hours.

“That’s what we know about this pandemic. It hit the same people who were already suffering from wages that couldn’t keep up with their living expenses,” she said.

The biggest reason for the soaring heating costs this winter is the recent soaring prices of energy products after falling to a few years’ lows in 2020. coronavirus.

For example, US natural gas has risen to its highest price since 2014, up about 90% compared to last year. Meanwhile, the wholesale price of kerosene has more than doubled in the last 12 months.

Another reason for the rise is how global the fuel market has become. In Europe, strong demand and limited supply have boosted natural gas prices by nearly 350% this year. As a result, some of the natural gas produced in the United States is heading for ships destined for other countries, putting upward pressure on domestic prices.

According to Barclays analyst Amalpret Singh, the amount of natural gas in the Northern Hemisphere’s inventory is relatively low, which means less cushioning for the winter heating season.

Kerosene prices, on the other hand, are closely tied to crude oil prices, which rose more than 60% this year. Homes affected by these increases are primarily in the northeast, with kerosene-based homes declining from 27% to 18% in the last decade.

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AP writer David Sharp contributed from Portland, Maine.

Copyright 2021 AP communication. all rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.



Heating costs are set to skyrocket as inflation hits energy prices | Jobs

Source link Heating costs are set to skyrocket as inflation hits energy prices | Jobs

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