Winter's burden: The new heating prices for 2023
Heating costs are going to rise over the next few months, potentially posing an additional burden this winter for low-income families.
Why it matters: Heating bills for Americans will likely pile up during the cold months amid soaring inflation and rising consumer prices. Low-income families may struggle to pay these higher costs and face hard choices as temperatures drop.
- Locations like New England that rely heavily on heating oil to keep homes warm will especially see the burden of a higher bill.
Heating bill costs for winter 2023
- Heating bills for those with natural gas will jump 28% ($931), according to the EIA.
- Heating oil costs will rise by about 27% ($2,354).
- Electricity costs will rise about 10% compared to last year ($1,359).
- Any homes using propane will see a 5% increase ($1,668).
- The Energy Department did not immediately respond to Axios' request for comment.
Why heating costs are up
The big picture: Energy costs will likely be their highest in 15 years this winter, the National Energy Assistance Directors Association told Axios.
- Costs are rising due to higher fuel prices and increased demand due to forecasts of a colder winter, the EIA said.
- The war in Ukraine's impact on natural gas prices will be showing up in household heating bills this winter, too, Axios' Matt Phillips writes.
Heating costs impact for low-income families
It's "going to be a tough year" for low-income families, Mark Wolfe, executive director of NEADA, told Axios.
- Low-income households will feel a heavy burden as they will fall behind on paying energy bills and have to make choices about rent, heat and food, Wolfe said.
- "In reality — this is one large income transfer from the bottom of the income population to the top," he told Axios. "Low-income families are becoming impoverished."