You may have noticed that the price of most types of energy – furnace oil, propane, natural gas, gasoline, and coal – have been increasing over the past few months around the world, across Canada, and here in Nova Scotia. Energy forecasters are expecting continued high prices for most types of energy during the upcoming heating season and Nova Scotians can expect to see higher energy prices over the winter months, and into 2022. This is tough news for everyone, especially as temperatures start to drop.
Why are energy prices going up?
Fundamentally, energy prices are going up because global energy demand is increasing faster than energy production. Last year, global energy demand declined significantly due to the global COVID-19 pandemic, resulting in significantly lower prices for most types of energy and we benefitted from some of the lowest energy prices in several years, including natural gas. This year, however, the strong and rapid economic recovery from the pandemic and colder winter temperatures in early 2021 over much of the Northern Hemisphere have caused global energy demand to increase significantly. As the pandemic continues, energy production is cautiously increasing to meet rising demand, resulting in much higher energy prices around the world.
What does this mean for customers?
Heritage Gas will continue to take measures to secure a reliable and affordable supply of natural gas for our customers. Over the last few years, we have entered long-term transportation contracts to bring natural gas to Nova Scotia from regions of North America where natural gas prices are the most stable and affordable. These contracts are helping to protect our customers from even higher price increases because our natural gas purchases are less exposed to higher priced and more volatile markets.
The charts below show the delivered price of natural gas, propane, and furnace oil over the past few years in Nova Scotia. Natural gas continues to remain competitive compared to other local energy sources and, even with increasing global energy prices, remains a very affordable option for Nova Scotians.
Because the price of most types of energy are expected to be higher this winter, it will be important for homeowners and businesses to conserve energy. Installing programmable thermostats, energy efficient heating equipment and additional insulation will all help to reduce energy use now, and over the long term.
Natural gas remains a safe, affordable, and cleaner energy source for Nova Scotians, providing convenience, versatility, and reliability for homeowners and businesses.Back to News