Homeowners who rely on natural gas to heat their homes may sometimes notice that their utility rates fluctuate from time to time. Though extreme changes in pricing are uncommon, understanding the different factors that could cause rates to go up or down will help you better manage your bill. The following are some common issues affecting natural gas prices.

Top 3 Factors That Impact Natural Gas Pricing

1. Supply & Demand

Supply and demand for natural gas can fluctuate wildly throughout the year. This is largely due to weather conditions—after all, there is a much greater demand for heating during the winter. When demand goes up, gas suppliers will often increase prices to encourage conservation and keep their reserves from running out. During the summer, when there is little demand, prices will fall. Economic factors can also affect supply and demand, as people will typically try to reduce usage when budgets are tight. The decline in demand can lower gas prices.

2. Natural Disasters

The Gulf Coast is a major supplier of natural gas. Unfortunately, this area is often at risk of hurricanes, which can cause significant damage to wells and disrupt the transportation of gas. A severe storm could result in damage that impacts production for several months. The resulting supply constraints often result in a spike in natural gas prices.

3. Local Market Regulations

Georgia has what is known as a “choice market,” or deregulated market. This gives consumers more options regarding which utility provider they wish to use for their home or business. This generates more competition, which typically results in lower prices as different providers try to gain a bigger share of the local market.

For natural gas, electricity, and other utilities, you can rely on Fitzgerald Utilities in Fitzgerald, GA. In business since 1907, this local provider uses key distribution partnerships to ensure that you have everything you need to power your home and keep your family comfortable. To learn more about available utility services and rates, visit them online or call (229) 426-5400.