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Natural Gas Prices are Ridiculous

Well I opened my gas bill for December today...

Cuss words.

I had expected the bill to be larger than normal because I keep my thermostat at around 65 degrees, which is about 90 degrees warmer than it has been outside on those -30 degree days.

Still. Holy shiitake mushrooms.

Even running the air-conditioning in Arizona on 120+ degree days during the summer months pales in comparison with what this costs.

That led me to think about why the bill is so high. I don’t crank the thermostat up to unholy temps. I wear a jacket and socks in my living room, which remains at about 58 degrees even when the heater is running. I even have those nifty power saving curtains in the windows.

So what then?

Well, gas prices have reason at least a dollar at the local gas stations since I arrived here last April. Natural gas also has increased.

According to the U.S. Energy Information Administration (EIA), natural gas bills are 30 percent higher over last year. Retail natural gas prices in the country are forecast to be $12.93 per thousand cubic feet (Mcf), up from $10.17/Mcf during the winter of 2021. The biggest price hike, about 45%, was expected to hit the Midwest.

Why the increases?

Inflation.

The market has been flooded with COVID dollars and stimulus checks. More money in the market causes prices to spike.

And, when it comes to natural gas, regulations require fuel companies to pass costs along to the consumer, according to Market Realist. As such, utility companies cannot profit or lose money from natural gas commodity sales, meaning the consumer pays the difference.

This makes me worry about the underprivileged. I certainly am going to feel the bite of this extra cost over the next few months. Goodbye fresh cooked meals, hello Ramen.

But, for those who do not make much income, how are they going to cope? If it is the difference between staying warm or paying rent, which takes priority?

Talk about a Catch-22.

Heres to a warm spring!

 

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