Fuel costs for homes expected to tumble

People who heat with natural gas should do especially well, seeing their lowest bills in five years. But no matter what fuel is used, heating costs are expected to take less of a bite out of household budgets in the coming months - from $20 to as much as $280 lower than last winter depending on what fuel is used, the government says.

An expected milder winter, along with lower fuel costs, should cut average residential heating expenditures by 8 percent from last year, the Energy Information Administration said yesterday in its annual outlook.

The nearly 58 million households that use natural gas stand to save about $105 compared with last year, and propane users will get an even bigger break - as much as $280. More modest reductions, $20 to $60, are expected for people who use electricity or fuel oil.

The federal agency, which tracks energy statistics and trends, cautioned that its projections are overall averages based on broadly expected weather conditions and fuel supply and cost trends. How much a family actually spends also will depend on local weather and the size and energy efficiency of their home.

According to the agency, households are expected to pay an average of $783, nearly 12 percent less than last winter, for natural gas, and $1,821 for heating oil, about 2 percent lower. People using electric heat will pay about $933, a decline of 2 percent, and those using propane $1,667, a 14 percent drop.

Natural gas prices have been falling because of hefty supplies and a drop in demand caused by the sliding economy.

The nearly 8 million households that use heating oil, primarily in the Northeast, can expect to save about $50.

The agency said residential heating oil prices in the Northeast are expected to average $2.64 a gallon this winter, just two cents cheaper than last winter but a significant drop from the average $3.31 a gallon of two winters ago.