Cost of Natural Gas Heating Goes Up Posted on January 13, 2026 The cost of natural gas heating has soared to the highest level in three years, driven by the cold weather and recent shift in the polar vortex. According to the US Energy Information Administration (EIA), the updated average price for natural gas in January has surged to nearly $4.30 per million BTUs this season. The new price is almost 40 cents higher than its initial forecast released in November. Natural gas futures have skyrocketed by almost 40% since September, hitting their highest level since 2022 earlier this week. Reason for the Surge According to the EIA, “colder-than-expected” weather in December was the primary reason behind the price surge. Gusts of cold air blowing in from the Arctic brought colder winter temperatures. This resulted in a polar vertex that blanketed much of the East Coast. Another factor is US gas production being unable to keep up with the growing demand for LNG. This means that gas prices in 2026 and beyond are expected to increase above last year’s levels, regardless of weather outlooks. Increased production levels could help offset prices in the latter part of the first quarter, but it will take time to trickle down to the market. Meteorologists also forecast above-normal temperatures by mid-January, which would reduce heating demand. In the meantime, the agency estimates there will be a 3% rise in gas heating costs this winter. How to Offset the Cost ☑ Lower the thermostat Reducing your thermostat setting by just a few degrees can yield considerable savings. The Department of Energy says that lowering the temperature for part of the day (ex. During the daytime and when the home is empty) can cut annual heating costs by up to 10%. ☑ Seal air leaks and block drafts Air leakage around windows, doors, and other openings are one of the biggest sources of heat loss for US households. Check out our guide to winter sealing and insulation. ☑ Optimize your heating system A well-tuned furnace or boiler runs more efficiently, providing more heat for less fuel. Replace or clean filters regularly, and bleed radiators (hot-water systems) to improve heat distribution. ☑ Consider heat pumps Heat pumps (air-source or ground-source) can deliver more heating energy per unit of electricity than fossil-fuel systems do per unit of gas. See our head to head comparison of heat pumps vs gas furnaces. Federal and state rebates / tax credits can help offset the purchase and installation costs. Mickey Luongo Mickey is the resident heating and air conditioning expert with over 15 years of experience in the industry.
