Energy Costs Predicted Down This Winter

As cold weather begins to roll into more and more parts of the world, cash-strapped families may be dreading the inevitable amount of money that they will have to spend on their utility bills to keep their house warm. However, new data released by the Energy Information Administration shows that U.S. households will pay as much as 8 percent less on heating-fuel costs due to falling energy prices.

The EIA predicts that the average household expense for space-heating fuels will be down about $960 on average in the period from October 1 to March 1, marking a drop of $84 from last winter. That means that the average amount of money spent on natural gas, propane, electricity, and heating oil is expected to fall.

Households that use natural gas and propane for heating purposes will experience the steepest drop in prices, paying about 12 percent to 14 percent less on their energy bills. More than half of all U.S. homes are heated by natural gas, while about 6 percent use propane. Weak U.S. demand and increased production of natural gas has contributed to the falling price.

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