When Are Home Heating Prices Expected to Go Down?

With winter weather hitting hard, homeowners in Fort Lauderdale are facing the pain of home heating costs. Recent years have seen a notable jump in energy prices, leaving many searching for answers and relief. Uncover what impacts 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 are still the primary source for making electricity in spite of the increase in renewable energy sources like wind and solar. 

What Affects the Rates of Fossil Fuels?

Based on the above information, it’s clear that fossil fuels heat a vast majority of North American households. Supply and demand is the number one factor generating price fluctuations. An increase in supply—triggered by greater production and storage rates—usually lowers prices, while a spike in demand—brought about by extreme weather, a flourishing economy and rising rates for alternative fuels—can cause prices to skyrocket.

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

Domestic natural gas production outpaced consumption starting in 2017, leading to a broad price decline through 2018. Unfortunately, demand has soared recently across all sectors, causing natural gas prices to hit heights not seen in more than decade.

In 2022, the average wholesale cost of U.S. natural gas surged to its highest point since 2008, reaching an average of $6.45 per million British thermal units (MMBtu). This massive increase represented a significant leap of over 53% from the previous year, marking it as one of the steepest annual increases ever recorded.

A number of factors contributed to the erratic rise and uncertainty of natural gas prices last year. In early 2022, production 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 regions, combined with a spike in domestic demand due to cold weather, stretched the price range even further.

In the spring of 2022, prices jumped past $9/MMBtu, only to tumble by 40% following the fire and subsequent shutdown at the Freeport LNG export terminal. This incident considerably cut U.S. LNG exports and redirected more natural gas to storage. Unfortunately, as the summer heat ebbed, prices climbed once more, peaking in late August.

Going into the fall, an increase in natural gas production and higher-than-average injections into storage saw prices drop down closer to the five-year average. Yet, as temperatures fell, the demand for heating caused prices to rise again.

When Will the Cost of Home Heating Fuel Cool Down?

The fluctuations in natural gas prices highlight the intricate interplay of factors influencing home heating costs. As we look onward to the rest of the 2023-24 heating season, the market’s past behavior offers insights into future price patterns and the potential for cost-saving opportunities.

As of late 2023, prices have decreased from their previous highs thanks to robust production and relatively moderate temperatures. While demand is still steady, forecasters are predicting prices around $3.44/MMBtu this winter, offering some respite for homeowners as we move through the heating season.

Tips to Cut Your Heating Bill

Regardless of how you heat your home or what prices are like, you can take several easy steps to improve energy efficiency and reduce your heating expenses. Here are a few suggestions:

• Seal drafty windows and doors with caulk and weatherstripping.
• Use curtains to your advantage, opening them during the day for free light and heat and then pulling them back over the windows at night to insulate your windows.
• Boost attic insulation to stop heat from rising out of your home.
• Install a smart thermostat that learns your routines and saves you money.
• Lower the temperature on your thermostat when you’re out to avoid overheating an empty house.
• Don warmer clothes inside the home so you aren’t forced to crank up the thermostat.
• Plan annual furnace maintenance to keep your heating system in top shape.
• 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 Fort Lauderdale with Service Experts Heating & Air Conditioning

Nothing is more critical to the Service Experts Heating & Air Conditioning team than your comfort and safety. Our heating solutions can also help lower home heating costs, which is good news for your pocketbook. With ACE-certified technicians at the helm, you can expect fast, long-lasting solutions to all your comfort needs. Our 100% satisfaction guarantee means that if you’re not completely happy with our services, we promise to make things right.

As a company that prides itself on innovation, customer engagement and community support, you can trust Service Experts Heating & Air Conditioning to make a significant difference in your life and sense of comfort. For more details of what you can expect with heating prices in Fort Lauderdale or personalized tips to help lower your utility bills, reach out to the professionals at Service Experts Heating & Air Conditioning. Call 954-736-4314 today to learn more.