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While Gas Prices Decline, Heating Costs Rise
Published in Saudi Press Agency on 09 - 10 - 2013

AlHijjah 4, 1434, Oct 9, 2013, SPA -- Even as prices at the gas pump have fallen in recent months, the vast majority of American households are facing higher heating bills this winter, according to new figures by the U.S. Energy Information Administration.
EIA analysts estimate that 90 percent of the nation's 116 million household will pay more for oil, natural gas and propane to heat their homes in what is expected to be a colder-than-usual winter for much of the country.
These figures stand in contrast to a separate EIA study comparing the average national rates for gasoline. Prices have, on average, decreased 20 cents to $3.43 in September. For 2012, the figure averaged at $3.63 and is expected to decline to $3.40 in 2014. Prices vary by region, with the Western states commanding the highest average prices.
The EIA's winter outlook blames the increased heating costs on higher projected prices for electricity, natural gas and propane.
Although overall consumption will be slightly less than last year, prices for natural gas will increase $80, representing a 13 percent increase to $679.
Propane price increases have varied considerably across the nation, as only 5 percent of U.S. households use propane heat. Propane will jump $120 in the Midwest, a 9 percent increase to $1,666. Households in the Northeast, meanwhile, can expect to see a $206 increase, an 11 percent spike. These increases can be attributed to an 8 percent price bump and a 3 percent increase in consumption.
Consumers using electric heat will see a $909 spike to $2,046, a 2 percent increase. About 39 percent of U.S. households rely on electric heat, ranging from 14 percent in the Northeast to 63 percent in the South.
Mark Wolfe, executive director of the National Energy Assistance Directors Association, which advocates for heating assistance for low income families, worries that high heating oil prices, colder weather, and cuts in federal heating assistance will leave more families vulnerable.
"Two years ago we could help close to 2 million more families than we can now," Mr. Wolfe told The Associated Press.
In 2010, Congress set aside $5.1 billion for heating assistance. This year, Mr. Wolfe said the aid is likely to be closer to $3 billion. "There's no ability to respond to spikes in prices," he said. "If this winter is really cold, it won't be adequate."


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