Gas prices skyrocket as the global energy crisis worsens

Compared with final winter, households will spend 54% extra for propane, 43% extra for residence heating oil, 30% extra for pure gasoline and 6% extra for electrical heating, the US Energy Information Administration mentioned in a new report Wednesday.

The EIA expects residence heating costs to rise throughout the nation, for all heating fuels and beneath a wide range of climate contingencies.

The forecast reflects a spike in energy costs, particularly oil and pure gasoline. US oil prices recently closed above $80 a barrel for the primary time since 2014. Natural gasoline, the commonest gas used o warmth properties, has surged to costs unseen since 2008.
Gas prices skyrocket as the global energy crisis worsensGas prices skyrocket as the global energy crisis worsens

“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 mentioned in a press release. “These dynamics are raising energy prices around the world.”

Energy sticker shock is much more excessive abroad, particularly in Europe, the place natural gas prices have skyrocketed.

The scenario is being amplified by forecasts for cooler-than-usual temperatures. The EIA famous that the National Oceanic and Atmospheric Administration expects a barely colder winter this yr than final yr — and that in flip will drive up power consumption.

“U.S. households will spend even more if the weather is colder than expected,” the EIA mentioned in its report.

Americans are already coping with sticker shock. Consumer prices increased 5.4% in September from a yr in the past, a Wednesday government report confirmed. That marks an acceleration from July and matches the quickest enhance since 2008. Energy prices surged practically 25% over the previous yr, together with a 42% spike in gasoline and a 21% bounce in utility gasoline service.