If you have put gas in a vehicle or sent a payment to your utility company in recent weeks, you are sure to agree that energy costs are on the rise in the United States. But if you are like the average American, you do not keep as close an eye on the precise numbers for things like gas for your car or electricity for your home. We all need these utilities and services to function, and we continue to pay the bills while hoping they soon begin to decrease. So it can be helpful to go to a reliable resource to see just how much energy prices have increased over the last year.
A Reliable Resource
According to the Joint Economic Committee, the Consumer Price Index reached 7% in December of 2021. That marked the highest point in 40 years. And experts attribute 21% of that increase to rising energy prices across the board. The gas pump was one of the most easily recognized places to spot the rise. Here, unleaded fuel prices rose by 50% in just a year. But other essentials were not far behind.
Energy Prices Spike For Households As Well
At the same time vehicle fuel prices were being evaluated, household energy prices were also being reviewed. These numbers covered electricity, natural gas, and utility services and were found to have increased 29% from December 2020 to December 2021. This increase of nearly one-third is the most significant increase since 2005.
But looking at percentages can be deceiving. It is far simpler to grasp when there are real numbers to examine. So for the year in review, the average household spent an additional $1,200 on energy costs compared to the previous year. If you did not get a raise of over $1,200, you were scrambling to find a way to make that increase work in your budget. For the lowest wage earners in the United States, this increase took their energy bill to over 10% of their annual income compared to 8% the year before.
It Is All About Supply And Demand
As with everything on the open market, when demand increases faster than the supply side increases, prices go up. From fluctuation dating back to the beginning of the Pandemic, supply and demand have been out of balance. In the third quarter of 2021, global oil demand was outpacing production by 2.2 million barrels a day, sending prices toward the sky.
Workable Solutions
While no one person can alter the price of utilities, you can change the amount of energy your home is Minneapolis/St. Paul home using. An energy audit is the place to start to locate energy waste and reduce your home utility bills. The team at Lumberjack Electric can help you determine how you can save energy with more efficient ENERGY STAR appliances, LED lighting, and decreasing lost heat with a more airtight home.
Call 612-236-9052 to learn more about how you can reduce your home’s energy consumption and take a little bit of the stress off of your household budget.
