Is Now The Right Time To Lock In Natural Gas Rates?
Georgia residents are asking themselves “should I lock in my natural gas price now?”. This is always a tricky question to answer, and at Georgia Gas Savings we’re happy to lend you our expertise. Find out whether now is the time to lock in natural gas prices in Georgia.
When Is The Best Time To Lock In Natural Gas Rates?
The price of natural gas fluctuates throughout the year. This is because more natural gas is burned during some months than others. Winter sees heavier use of home furnaces to keep warm, with colder weather bringing higher usage. During summer, Georgia residents turn their climate control systems up to maximum to stay cool. This means Georgia’s power stations must burn natural gas to generate enough electricity to meet demand.
In fact, more natural gas is burned over summer than at any other point in the year. If you’re saying “Why is natural gas going up? It’s so hot out!”, then here’s your answer. Because so much is used in power generation, prices for domestic use go up. Normally, the best month to lock in natural gas rates is just before or after summer, in the “shoulder months”.
Will Natural Gas Prices Rise?
This is the big question. If prices are going to increase, then it’s smart to lock in a rate before they rise. However, natural gas price forecasts say this isn’t likely to happen. That’s due to several different factors. Firstly, prices dropped significantly at the start of this year. Thanks to high levels of supply and lower than anticipated demand, natural gas prices collapsed in early 2019. The market hasn’t really bounced back, partly because there’s enough natural gas in storage to handle any shortfall.
Similarly, natural gas production is actually forecasted to increase over summer; “During the first half of 2019, EIA estimates . . . a 12.2% increase from levels in the first half of 2018. In the second half of 2019, EIA expects . . . a 7.1% increase. EIA expects growth in natural gas production through the remainder of 2019, largely in response to improved drilling efficiency, year-over-year cost reductions, and higher associated gas production from oil-directed rigs”
When Is The Best Time To Lock In Natural Gas Rates?
If your current natural gas plan provides a good rate, then you’ll probably be better off waiting a little longer. The markets expect natural gas to get cheaper over summer, and, historically, they’ll probably get cheaper again in fall. Of course this doesn’t apply if you’re already on an expensive natural gas rate. If your current plan expires and puts you on a variable rate plan, you should act quickly to secure a fixed rate deal. Find cheap natural gas in Georgia by comparing the best rates in your area.
It’s essential to keep in mind that no matter how many predictions are made about the future, nobody knows exactly what will happen. Waiting for cheaper rates is probably a good way to save money in the future. However, rates could unexpectedly spike this summer. If this would present severe difficulties for your finances, it might be better to lock in a short term cheap natural gas rate today.
Whether you’re acting now or over the next few months, you need to keep a close eye on the best deals. Make it easy by downloading the Georgia Gas Savings app to your Android or iOS device. Find and switch to the cheapest natural gas plans around right from your phone. https://www.georgiagassavings.com/apps/ga