Why are Natural Gas Prices Going Up in Illinois?
Why are natural gas prices going up in Illinois? What are the greatest factors affecting the price of natural gas in Illinois? You will find out in this blog post.
Many residents of Illinois are wondering why the cost of living in the state is high. Of course, the price of natural gas affects the general cost of living in a state because it also determines the price of gas.
In this article, you will learn more about natural gas prices in Illinois and why it is going up in 2023. Plus, when will it come down?
Why are gas prices going up in Illinois in 2023?
The tax rate is the major reason why gas prices are going up in Illinois. Back in 2019, residents of the state started paying 38 cents from 19 cents per gallon of gas, which automatically increased the price of gas in Illinois. Moreover, since then, gas taxes in the state has continued to go up, leading to the continuous rise in gas price in Illinois.
In addition to the gas tax, there are other factors working negatively on gas prices in Illinois. They include the global price of crude oil, the high demand for gas in the state, the low supply of gas, and the high global demand for crude oil with low supply caused by the reduction in crude oil production by OPEC member countries.
Did natural gas prices go up in Illinois?
Natural gas prices are going up every year globally, including in America. More specifically, it also increases in the state of Illinois. In 2022, the price was $970 for heat over the winter months, nearly double the cost from a year ago. The price has further increased in 2023, as we will see in the next section.
Why are natural gas prices going up in Illinois?
Why are natural gas prices going up in Illinois? Why the spiking natural gas supply prices in the state?
The extreme weather in Illinois, which has been attributed to climate change globally, froze natural gas in pipelines that connect natural gas to the state and wellheads in Texas and other areas of the South, limiting supply across the US just as heating demand was shooting up, all contribute the rising prices of natural in Illinois and the United States in general.
How much is natural gas in Illinois?
Almost every home in America uses natural gas, and buying this product is becoming hard every day as the prices continue going up. If you live in Illinois, you will be paying one of the highest prices in more than a decade at $1 a therm or more in May, according to gas price data filed with the Illinois Commerce Commission (ICC).
The table below contains natural gas prices in Illinois by leading companies in the industry.
| Ameren Illinois | 70.844 cents per therm (up about 7.6 percent from May 2021) |
| Consumers Gas | 97.484 cents per therm (up about 147.6 percent from last May) |
| Illinois Gas | 98.49 cents per therm (up about 213.2 percent from last May) |
| Liberty Utilities | $1.4279 per therm (up about 97.8 percent from last May) |
| MidAmerican Energy | 93.99 cents per therm (up about 39.9 percent from last May) |
| Mt. Carmel | 50.16 cents per therm (up about 129.8 percent from last May) |
| Nicor Gas | $1.11 per therm (up about 109.4 percent from last May) |
| North Shore Gas | $1.0233 per therm (up about 132.2 percent from last May) |
| Peoples Gas | 99.24 cents per therm (up about 86.4 percent from last May) |
