One of Your Fuel Bills Is Poised to Be Lower This Year
A facts-only brief, written by a local AI model from this article in The Wall Street Journal, October 21, 2026. It may contain mistakes, and it is not the article: the full story is at wsj.com.
The Energy Information Administration estimates that American households using natural gas for heating will pay approximately 9% less this winter compared to the previous year, with average combined bills from November through March dropping by about $640. This reduction occurs despite a 40% year-over-year increase in average retail gasoline prices and a 75% rise in diesel costs, which the EIA attributes to supply disruptions following the conflict between the United States and Iran. While the EIA projects national heating demand will remain similar to last year, regional variations are expected, with the Northeast facing 12% fewer heating-degree days and the West experiencing 25% more.
Background
- Natural gas prices are starting the heating season roughly 19% lower than a year ago, driven by record U.S. production and ample stockpiles.
- Goldman Sachs analysts forecast winter gas prices will average $2.95 per million British thermal units, while November futures settled at $2.79.
- High oil prices have incentivized domestic drilling in the Permian Basin, increasing gas output as a byproduct, with the EIA projecting a record average daily output of 122.5 billion cubic feet in 2026.
- Households using heating oil, primarily in Alaska and the Northeast, are expected to pay an average of 21% more this winter due to rising diesel costs.
Read the full article at wsj.com
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