5% of US households nationwide use propane primarily to heat their home
With the winter months approaching, consumers may be forced to cut back on their holiday purchases as they prepare for significant expenses such as heating their homes.
And this year, according to the U.S. Energy Information Administration (EIA), paying for heat is going to take a big chunk out of some of the budget.
With higher propane prices and slightly cooler temperatures this winter than in previous years, the EIA projects that American households that rely primarily on heating with propane will spend about 50% more during this heating season. According to the EIA, the Midwest is projected to spend 69% more, while the Northeast and South will spend 47% and 43% more, respectively.
According to the EIA, the summer season lasts from October to March.
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The main contributor to this growth will be higher retail propane prices, which, according to the EIA, are being driven by lower propane inventory levels coupled with higher wholesale prices.
At the same time, AccuWeather senior meteorologist Paul Pastelok predicted that it would be a busy winter season across the country, particularly in the Northeast, which could see an early arrival of the winter season.
“This winter, I think, is going to be a cold one, at least from the Appalachians to the Ohio Valley and the inner sections of the Great Lakes,” Pastelok said, noting that winter is between 1 and 3 degrees Fahrenheit above normal. will be average.
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According to the EIA, about 5% of all American households primarily use propane to heat their homes. However, at least 14% of households in Vermont, New Hampshire, South Dakota, North Dakota and Montana primarily use propane, the agency said.
The agency estimates that seasonal expenses for the average household using propane as a primary fuel source will be $2,012 in the Northeast, $1,805 in the Midwest and $1,643 in the South.
Strategic Resource Group managing director Bert Flickinger told Granthshala Business that consumers are going to feel the impact for the foreseeable future.
“Between all of a sudden, higher home heating bills and buying generators, they’re looking at thousands of dollars on projected unplanned expenses that will continue for the foreseeable future,” Flickinger said. Families are going to spend at least $1,000 more per year for heating.
In some areas, such as New England, families can expect to pay up to $2,000, according to Flicker.
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This means, “there is not going to be enough money for consumables, especially food, to make up for the increased prices of clothing,” he said.
“Consumers are going to cut down everywhere, you’re going to have to cut down on gift-giving. You’re going to have to cut down on entertainment. It’s going to cut down on eating out,” Flickinger said.