The average U.S. household will spend 8 percent less in heating-fuel costs this winter, with natural-gas and propane users seeing the biggest decline in cost, the Energy Department said Tuesday. This winter's heating costs will be lower because of cheaper fuel prices, abundant fuel supplies, and milder weather compared to last year, the department's Energy Information Administration (EIA) said in its annual winter outlook. “Inventories of all heating fuels are currently well above levels seen at the start of last winter,” the EIA said. The agency's forecast covers the U.S. winter heating season from October through next March. Households are expected to pay an average of $783, almost 12 percent below last winter, for natural gas, and $1,821 for heating oil, about 2 percent lower than last year. Households using electric heat will pay $933, a 2 percent decline from last year, and those using propane will pay $1,667, 14 percent below last winter, the EIA said. Meanwhile, demand for natural gas is expected to be down 1.1 percent this winter, with consumption of heating oil down 1.9 percent, propane down 0.6 percent, and electricity up 0.1 percent, the EIA said. The EIA report cautioned that the projections reflect average costs and that expenditures for individual households will vary depending on local weather conditions, the size and energy efficiency of homes, and the efficiency of heating equipment.
