Natural gas customers will probably see higher rates this winter than last, but motorists should find relief at the gasoline pumps, energy officials say.
A mild autumn so far has suppressed demand for natural gas, keeping prices relatively low, says Gary Rehm, vice president of marketing for Mississippi Valley Gas Co. But as winter sets in and demand increases, the cost of heating a home will likely rise, Rehm said.
"I don't know anybody who has an accurate crystal ball," Rehm said. "We know prices on average this year will be higher than last year, but certainly lower than how we ended last winter. The largest single factor is going to be the weather."
Late last winter, natural gas prices spiked to a high of about $13 per 1,000 cubic feet. Right now, the rate has dipped below $5, which is still higher than the $4.25 rate this time last year.
The most effective way to counteract high rates is to conserve, he said, referring to a number of tips posted at all Mississippi Valley Gas locations. The company recommends keeping the thermostat between 65 and 68 degrees. Other cost cutting measures include:
- Taking showers instead of baths.
- Keeping clothes dryer filters free of lint.
- Opening drapes during the day and closing them at night.
- Getting equipment checked regularly.
"Conservation still works," Rehm said. "We'd like for our customers to be aware of it and use the gas wisely and safely."
While the picture for natural gas remains unclear, the cost of gasoline is expected to be fairly stable, according to Tom Gresham, president of Double Quick and Gresham Petroleum Inc. in Indianola.
Gasoline prices have steadily declined since March when, fueled by uncertainty about the looming war in Iraq, they broke $1.65 a gallon for regular unleaded. They were around $1.36 in Greenwood this morning.
"Right now, gas prices are coming down a little bit," he said. "I have read that the price of crude oil has gone up some, but I feel like gas prices are pretty stable right now."Wednesday's price for crude oil was around $31.50 a barrel. That's about $1 higher than the price last spring when gas prices spiked, but increased supplies have cut the cost at the pump, Gresham said.
In March, analysts blamed two conflicts that they said were choking supplies from two of the nation's top sources of crude oil - the imminent war in Iraq and an oil workers strike in Venezuela. While the situation in Iraq hasn't stabilized, the crude oil supply from the Middle East and Venezuela has. That trend, combined with a normally lower demand for gasoline in the winter, has made for a steadier market, said Gresham.
"As long as you've got a good supply of crude, the price is going to come down some," he said.
