Prepare for a rude surprise when you receive your winter heating bill.
The price of natural gas has increased more than two-fold in the United States since last year, after years of low prices. Wholesale prices in Europe and Asia are five times higher than they were one year ago.
In tandem with the strong recovery from the pandemic recession and rising fuel costs, more households and businesses are now using different forms of fuel. In many places around the globe, this will lead to higher heating costs.
After enjoying a long period of low prices, natural gas consumers are facing the burden of a much more expensive fuel—and the prospect that heating bills may be much higher this winter.
Mark Wolf, executive director at the National Energy Assistance Guidance Association, stated that consumers have grown accustomed to low prices because of the pandemic. “Now everything’s back online, the industry is recovering and natural gas can be used again in large amounts. This is pushing up the price of natural gas.
The United States is experiencing a boom in prices. They also convert some natural gas into liquids and ship it to Europe and Asia. This is reflected in higher gas bills for consumers all over the globe. Analysts predict that these prices will rise even more in winter when customers are most dependent upon fuel.
The primary reason natural gas prices have risen is because of the increased demand for fuel after the economic recovery from the devastating effects of the pandemic. There is also another factor that is important: less natural gas is on the market.