Rising natural gas prices mean Minnesotans could pay an extra $385 this year to heat their homes compared to 2021

Surging natural gas prices mean many Minnesotans will be paying much more to keep their homes warm this winter.

Center of the American Experiment estimates higher prices could force Minnesota households to pay an extra $385 this year in home heating bills compared to 2021, and an additional $450 compared to 2019.

Data from the U.S. Energy Information Administration (EIA) show natural gas prices for Minnesota residential customers are much higher this year than any time in in the last several years.

The forecasted prices for 2022 were determined using EIA’s Henry Hub natural gas cost estimate for natural gas in Quarter Four, and multiplying it by 2.3, which is the average premium for Minnesota residential natural gas prices compared to Henry Hub thus far in 2022.

Rising natural gas prices will translate into much-higher bills this winter.

In February of 2022, the average Minnesota home heating bill was $94 higher than in 2021, which is partially due to higher fuel costs, and partially due to using more natural gas. Higher fuel costs mean heating bills could be $50 higher this December, compared to 2021, if consumers use the same amount of gas for home heating.

Rising natural gas prices mean the average family will pay $385 dollars more this year to stay warm than they did last year, and $450 dollars more than they did in 2019.

Increasing heating expenses come at a time when people are already struggling to pay for groceries and gasoline for their cars. Unfortunately, policies enacted by the Biden administration have constricted the ability of natural gas drillers to increase the supply of this vital fuel on the market and this has resulted in higher prices for Minnesota families and businesses.