When Are Home Heating Prices Expected to Go Down?

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

Types of Home Heating Fuel

Several fuels are used to keep homes warm and cozy in the United States:

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

• Electricity warms 40% of U.S. homes. Fossil fuels remain the main source for creating electricity even with the surge in interest in renewable energy sources like wind and solar. 

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

Considering the above information, it’s clear that fossil fuels heat a vast majority of North American households. Supply and demand is the biggest factor creating price fluctuations. An increase in supply—triggered by more production and storage rates—typically lowers prices, while an increase in demand—caused by severe weather, a booming economy and rising rates for alternative fuels—can cause prices to soar.

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

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

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

A number of factors led to the unpredictable rise and lack of stability 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 way up. Robust liquefied natural gas (LNG) exports to Europe and other regions, paired with an increase 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 drastically cut U.S. LNG exports and redirected more natural gas toward storage. Unfortunately, as the summer heat ebbed, prices climbed again, 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 retreat closer to the five-year average. Yet, as temperatures went down, the demand for heating caused prices to go up one more time.

When Will Fuel Rates Go Down?

The changes in natural gas prices are indicative of the complex interplay of factors influencing home heating prices. As we look ahead to the rest of the 2023-24 heating season, the market’s past behavior offers insights into future price patterns and the prospect of cost-saving measures.

As of late 2023, prices have decreased from their previous highs thanks to robust production and fairly moderate temperatures. Even though demand remains steady, forecasters are predicting prices around $3.44/MMBtu this winter, giving some respite for property owners as we move through the heating season.

Tricks to Trim Your Heating Bill

No matter how you heat your home or what prices are like, you can take several easy steps to boost energy efficiency and reduce your heating costs. Here are a few strategies:

• 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 in the evenings to insulate your windows.
• Add more attic insulation to prevent heat from rising out of your home.
• Invest in a smart thermostat that learns your routines and helps you save money.
• Lower the temperature on your thermostat when you’re out so you don’t pay extra to heat an empty house.
• Don warmer clothes inside your residence so you do not have to crank up the thermostat.
• Schedule seasonal furnace maintenance to keep your heating system in peak condition.
• Use a whole-house humidifier. Moist air feels warmer than dry air, so you feel more comfy at a lower temperature.

Keep Cozy and Warm in Fort Lauderdale with Service Experts Heating & Air Conditioning

Nothing is more important to the Service Experts Heating & Air Conditioning team than your comfort and happiness in your home. Our work can also help reduce home heating costs, which is good news for your pocketbook. With ACE-certified technicians at the helm, you can expect quick, lasting remedies 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 involvement, you can trust Service Experts Heating & Air Conditioning to make a significant difference in your life and enjoyment in your home. For more details of what you can expect with heating prices in Fort Lauderdale or personalized tips to help reduce your utility bills, reach out to the professionals at Service Experts Heating & Air Conditioning. Call 954-736-4314 today to learn more.