When Are Home Heating Prices Expected to Go Down?

With winter weather hitting hard, homeowners in Fort Lauderdale are facing the problem of home heating costs. Recent years have seen a remarkable jump in energy rates, leaving many looking for answers and relief. Understand what has an impact on home heating prices, the recent trends we’ve seen and strategies to keep your utility bills in check.

Different Kinds of Home Heating Fuel

Many fuels are used for home heating in the United States:

• Natural gas heats 48% of American homes.
• Heating oil serves 5% of homes.
• Propane accounts for another 5%.

• Electricity warms 40% of U.S. homes. Fossil fuels remain the primary source for making electricity in spite of the renewed focus on renewable energy sources like wind and solar. 

What Factors Impact the Cost of Fossil Fuels?

Based on the above information, it’s apparent that fossil fuels heat a great majority of North American households. Supply and demand is the most significant factor driving price fluctuations. An increase in supply—triggered by greater production and storage rates—typically lowers prices, while a surge in demand—triggered by harsh weather, a thriving economy and rising rates for alternative fuels—can cause prices to skyrocket.

Exactly How Much Has the Cost of Natural Gas Risen?

Domestic natural gas production outpaced consumption starting in 2017, resulting in an overall price decline through 2018. Unfortunately, demand has surged 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 reached its highest point since 2008, hitting an average of $6.45 per million British thermal units (MMBtu). This huge spike represented a tremendous leap of over 53% from the previous year, marking it as one of the steepest annual increases on record.

Many factors added to the volatile rise and uncertainty of natural gas prices last year. In early 2022, processing hiccups caused by freeze-offs and a significant draw from natural gas reserves nudged prices up. Robust liquefied natural gas (LNG) exports to Europe and other countries, coupled with a spike 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 stoppage at the Freeport LNG export terminal. This incident sharply cut U.S. LNG exports and redirected more natural gas to storage. However, as the summer heat faded, prices climbed again, peaking in late August.

Moving 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. But, as temperatures went down, the demand for heating caused prices to go up again.

When Will the Cost of Home Heating Fuel Go Down?

The variations in natural gas prices are indicative of the complex 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 possibility of cost-saving options.

As of late 2023, prices have fallen from their previous highs thanks to robust production and relatively mellow temperatures. Even though demand continues to be steady, forecasters suggest prices around $3.44/MMBtu this winter, giving some respite for homeowners as we move through the heating season.

Tips to Reduce Your Heating Bill

It doesn’t matter how you heat your home or what prices are like, you can take several helpful steps to increase energy efficiency and lower your heating expenses. Here are a couple of strategies:

• 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 drawing them closed in the evenings to insulate your windows.
• Add more attic insulation to prevent heat from rising out of your home.
• Buy a smart thermostat that learns your routines and saves you money.
• Lower the temperature on your thermostat when you’re not home so you aren’t heating an empty house.
• Put on warmer clothes indoors so you don’t need to crank up the thermostat.
• Schedule yearly furnace maintenance to keep your heating system in peak condition.
• Install a whole-house humidifier. Moist air feels warmer than dry air, so you feel more comfortable at a lower temperature.

Bring Comfort Home in Fort Lauderdale with Service Experts Heating & Air Conditioning

Nothing is of greater importance to the Service Experts Heating & Air Conditioning team than your comfort and well-being. Our heating solutions can also help reduce home heating costs, which is great news for your finances. With ACE-certified technicians at the helm, you can expect quick, long-lasting solutions to all your comfort needs. The assurance of a 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 support, you can trust Service Experts Heating & Air Conditioning to make a positive difference in your life and enjoyment in your home. For more insights into heating prices in Fort Lauderdale or personalized solutions to help reduce your utility bills, contact the professionals at Service Experts Heating & Air Conditioning. Call 954-736-4314 today to learn more.