U.S. Energy Information Administration (EIA) released a report Wednesday, forecasting that household energy expenditures may jump as high as 54% compared to the winter of 2021.
Homes in the U.S. that use natural gas for heat will face a 30% increase in their energy bills, paying an average of $746. Whereas households that rely on heating oil are projected to pay 43% more than in the previous year, the report stated.
The steepest uptick in energy expenditures will hit Americans who use propane, forcing them to pay an average of $1,800, which is 54% higher than in the previous heating season.
— EIA (@EIAgov) October 13, 2021
The EIA cited surging crude oil prices as directly affecting U.S. household heating expenses. The price of oil, which rose by 60% over the past year, shot up Oct. 4 after the Organization of the Petroleum Exporting Countries (OPEC) doubled down on its plans to increase oil output at a gradual rate.
As of Thursday, WTI reached $80.98 per barrel, the highest level since 2014, and Brent was $83.72 per barrel, its highest price since 2018. (RELATED: Biden’s Chief Of Staff Retweets Claim That Inflation Is A ‘High Class Problem’)
The U.S. economy is currently experiencing its highest inflation rate since January 1991. The U.S. Bureau of Labor Statistics announced Wednesday that the Consumer Price Index (CPI) increased 0.4% in September, bringing the key inflation indicator’s year-over-year increase to 5.4%.