U.S. consumers to spend more on heating bills

The U.S. Energy Information Administration (EIA) projected in its winter fuels outlook that U.S. consumers will spend more on heating their homes the upcoming winter compared to last year, due to the ongoing increase in energy prices worldwide.

“As we have moved beyond what we expect to be the deepest part of the pandemic-related economic downturn, growth in energy demand has generally outpaced growth in supply,” EIA Acting Administrator, Steve Nalley, said in the outlook.

Energy prices have sharply increased globally which have led to power cuts."These dynamics are raising energy prices around the world,” added Nalley.

Around half of U.S. households rely on natural gas for heat. According to EIA, the average cost for those homes is expected to rise by 30 percent to US  $746 for the period between October-to-March compared to the same period a year earlier.