According to the Energy Information Administration, over half of all homes in the United States rely on natural gas to heat their home. And, while the average cost of gas was just under $700 per year in 2020, the cost has been trending up, with households spending an average of $964 in 2022. That works out to about $80 per month. So, you’re certainly not alone in asking, “Why is my gas bill so high?” In the next few sections, we’ll explore some of the potential causes for a high gas bill and share some changes you can make to lower your bill.
I’ve noticed this myself—opening the gas bill in winter can feel like a punch to the gut. Those numbers seem to creep up every year, and it’s not just because it’s colder. Let’s break it down. For starters, natural gas prices are influenced by supply and demand, much like anything else. When demand spikes—say, during a brutal winter—or when supply gets tight due to production issues or geopolitical events, you’ll see it reflected in your bill. I dug into some data from the U.S. Energy Information Administration, and it turns out natural gas prices jumped about 15% from 2020 to 2022 in some regions. That’s not pocket change! To get ahead of this, I’ve started tracking my usage with a simple spreadsheet—nothing fancy, just noting the meter readings monthly. It helps me spot any weird spikes early and figure out if it’s my furnace acting up or just higher rates.
Aging Systems Can Lead to Higher Gas Bills
Max Veggeberg, CEO of Tetra, a heating and cooling company, explains that “an aging boiler, furnace, or water heater that can no longer keep up with the comfort demands of the home” is one of the most common causes for a high gas bill. Heating systems lose efficiency as they age, meaning an old furnace will need to work harder (and use more natural gas) to maintain the desired temperature than was necessary even a few years earlier. The same can be true for an outdated natural gas water heater. “Upgrading this may be an investment, but homeowners can see savings (and greater comfort in their homes) almost immediately,” Veggeberg tells Bob Vila. If you’re going to purchase a new furnace, water heater, or other appliances, look for ones with an Energy Star seal that will offer greater efficiency and a lower gas cost per month. Another option is to consult with your HVAC company about the prospect of converting to an electric furnace.
Solution: Upgrade to a new furnace and/or water heater.
Here’s the deal with old systems: they’re like an old car that guzzles gas. My neighbor had a furnace from the ‘90s, and his gas bills were through the roof until he upgraded. The science behind it is pretty straightforward—older systems lose their ability to transfer heat efficiently, so they burn more fuel to do the same job. I checked out some numbers from the Department of Energy, and a new Energy Star-certified furnace can be up to 15% more efficient than one that’s 10-15 years old. That could shave a good chunk off your bill, maybe $100-$200 a year. If you’re on the fence about replacing, get an HVAC pro to check your system’s efficiency—it’s usually a quick test. Oh, and if you’re thinking electric, keep in mind that electricity rates can be pricier in some areas, so crunch the numbers with your provider first.
Inadequate Insulation Can Cause a Furnace to Work Harder Than Necessary
If your home doesn’t have enough insulation, then warm air can escape during the winter, making your furnace work harder to achieve your desired temperature. The increased runtime will require more fuel, leaving you with a higher natural gas bill. This problem can also lead to higher electric bills, so it is something just about everyone will want to address to decrease their utility costs. “Most homeowners feel drafty windows and think they are the biggest cause of high energy bills or an uncomfortable home, but it’s more often low insulation levels. Windows only account for an average of 15 percent of a home’s surface area. Fixing insulation is also typically a much lower investment than fixing windows,” Veggeberg explains.
Solution: Hire a professional to perform a home energy audit to identify leaks or gaps in your insulation, and follow their recommendations to better insulate your home.
I learned this the hard way in my old house—drafty rooms and a furnace that never seemed to stop running. Insulation is like a cozy blanket for your house; without it, all that warm air you’re paying for just slips away. A friend of mine got an energy audit, and they found her attic was barely insulated—adding some fiberglass batts cost her about $1,200 but cut her heating costs by nearly 20%. The audit itself is key because it uses tools like infrared cameras to spot exactly where heat’s escaping. If you’re DIY-inclined, you can also check for drafts with a candle near windows and doors—if the flame flickers, you’ve got a leak. Sealing those gaps with weatherstripping or caulk is cheap and can save you a noticeable amount on your bill.
Higher Natural Gas Rates Can Lead to Higher Bills
Often, an increase in gas bill payment amounts boils down to the cost of natural gas. Unfortunately, natural gas prices can fluctuate and have been trending upwards for several reasons, including increased demand, international turmoil, weather disruptions, and more. If you signed up for a variable-rate plan with your fuel provider, then you’re going to be feeling the effects of all these occurrences.
Solution: Turn your thermostat down a few degrees, use alternative heating sources (such as a fireplace), or look for a long-term fixed-rate plan to eliminate surprise increases.
Gas prices are a rollercoaster, and not the fun kind. I’ve been on a variable-rate plan before, and let me tell you, it’s stressful when prices spike out of nowhere. A fixed-rate plan can be a lifesaver for budgeting—my cousin locked in a rate for two years and avoided a big jump during a cold snap last year. Also, using a fireplace or space heater for specific rooms can cut down on furnace use, but be careful—fireplaces lose a lot of heat up the chimney if not properly vented. I saw a report from the Energy Information Administration saying natural gas prices can vary by up to 30% year-to-year in some markets. If you’re stuck with a high rate, layering up with sweaters and dropping the thermostat a couple of degrees can make a real difference without breaking the bank.
Spikes in Usage Will Be Reflected in Higher Monthly Bills
If you have a gas furnace, seeing a gas bill increase during the cold, winter months is normal and generally not cause to rush to read your meter and ensure it isn’t malfunctioning. In this case, it’s also normal for your natural gas usage to decrease substantially during the spring and summer months when your gas furnace isn’t needed. Still, it can be a bit of a shock when you open a bill after your furnace kicked on during the first cold snap of the season.
Solution: While you cannot change the fact that you need heat during the winter, you can try to use less natural gas by setting your thermostat a few degrees lower than you typically do.
Winter bills always hit harder, don’t they? My gas usage doubles in January compared to July, and it’s just because the furnace is working overtime. The Department of Energy says heating can account for up to 50% of your energy costs in colder months. One trick I’ve picked up is using a programmable thermostat to lower the heat at night or when I’m out—it’s like putting your house on an energy diet. Also, layering curtains or thermal drapes can trap heat in, which means your furnace doesn’t have to run as often. If you’re seeing crazy spikes, though, it’s worth checking your meter yourself. I had a friend who caught a billing error just by comparing her meter reading to the bill!
Neglecting Basic Furnace Maintenance Tasks Can Lead to Poor Efficiency and Increased Gas Consumption
Even if your furnace and other natural gas appliances don’t need to be replaced, improper maintenance may be contributing to the natural gas price increase you’re seeing. Veggeberg explains, “Changing an air filter or wiping down dust and debris from your unit can improve your system efficiency by as much as 20 percent.” Keep your gas dryer vent clean to help it operate more efficiently, and aim to replace your furnace filters regularly (every 2 months for fiberglass filters or every 6 months for pleated filters). It is also advisable to contact an HVAC company to perform a yearly tune-up for your system before the weather gets cold.
Solution: Keep up with regular system maintenance to ensure your appliances are operating efficiently.
I’ll admit, I used to skip changing my furnace filter—big mistake. Dust and gunk build up and choke the system, making it work harder. After I started replacing filters every couple of months, I noticed my furnace wasn’t running as long, and my bill dropped a bit. A pro tune-up is worth it too; last year, the tech found a small issue with my burner that could’ve cost me hundreds if ignored. Regular maintenance isn’t just about efficiency—it can prevent costly repairs. For example, a clogged dryer vent doesn’t just waste gas; it’s a fire hazard. I set a calendar reminder to check filters and vents, and it’s saved me both money and stress.
Setting Your Thermostat Too High Can Lead to More Expensive Bills
If you’re searching for how to lower your gas bill, consider lowering your thermostat. The higher you have your thermostat set, the harder your furnace is going to have to work to heat the home and maintain the set temperature. Every time the furnace kicks on, it is consuming more gas, which could be why you’re seeing such high bills. According to the New Hampshire Department of Energy, lowering your thermostat by just one degree can save up to 3 percent on your heating costs.
Solution: Keep your home a few degrees cooler than you typically do.
I used to crank my thermostat to 72°F in winter, thinking it was no big deal. Then I read that dropping it to 68°F could save me a decent chunk—turns out, it’s true! The New Hampshire Department of Energy’s 3% savings per degree adds up fast. I’ve also started wearing thicker socks and a sweater indoors, which makes the lower temp feel just fine. Another tip: use ceiling fans on low to push warm air down from the ceiling. It’s a small tweak, but it keeps the house cozy without the furnace running nonstop. If you’re worried about comfort, try lowering the thermostat gradually—your wallet will thank you.
An Outdated Thermostat Could Be Increasing Usage Rates
The thermostat itself may even be to blame for higher than usual gas bills. If you have an older thermostat that isn’t functioning properly, it may be signaling for your furnace to turn on and off when it doesn’t need to. This can waste natural gas and lead to higher bills. If you have an old thermostat, consider purchasing a smart thermostat to replace it. Not only will a new model be more accurate, but smart thermostats can help you save additional money. You can program them to lower the temperature in the home when you’re away at work and then to automatically heat it back up shortly before you return. You can even make adjustments to the schedules or the temperature inside the home from anywhere using a smartphone.
Solution: Upgrade to a new smart thermostat.
My old thermostat was a dinosaur—clunky and inaccurate. Switching to a smart thermostat was a game-changer. I set it to drop to 60°F when I’m at work and warm up just before I get home, and I’ve probably saved 10% on my gas bill. Some models, like Nest or Ecobee, even learn your habits and adjust automatically. They’re not cheap—expect to spend $100-$250—but the savings add up. Plus, controlling it from my phone feels like living in the future! If you’re not ready to splurge, even a basic programmable thermostat can cut costs by automating temperature changes.
A Gas Leak Could Lead to Higher Bills
If you have an unusually high gas bill, then it is also possible that you’re dealing with a gas leak. Gas leaks are uncommon, but not impossible. Knowing what a gas leak smells like can help cue you into a problem. If you smell something resembling rotten eggs, it can indicate that there is a gas leak. If you ever notice such a smell—or hear a hissing-like sound near any of your appliances that use natural gas—don’t stop to investigate. Evacuate all people and animals from the house and call 911. They will locate your gas shut-off valve and determine whether there is a gas leak in your home.
Solution: Call 911 immediately if you notice any potential signs of a gas leak.
Gas leaks are scary stuff, and I’ve had a moment where I thought I smelled something funky near my water heater. Thankfully, it was just a weird odor from the drain, but it got me paranoid enough to learn the signs. Natural gas is odorless, but companies add a sulfur-like smell so you can detect leaks. If your bill spikes out of nowhere—like, way beyond normal winter usage—it’s worth being cautious. A plumber friend told me leaks often happen at old fittings or corroded pipes, especially in older homes. If you’re unsure, your utility company might offer a free inspection, which can give you peace of mind without costing a dime.
Final Thoughts
Opening a higher-than-expected natural gas bill is not a pleasant experience. While you, unfortunately, can’t do much about the current bill you’re looking at, implementing some of the changes and recommendations shared above can help keep future costs down. Consider keeping up with basic maintenance tasks, lowering the temperature on your thermostat, improving your home’s insulation, or contacting a professional to explore whether your outdated furnace should be replaced. A few changes can help offset rising natural gas supply rates.
Dealing with high gas bills feels like a never-ending battle sometimes, but small changes really do add up. I started with just lowering my thermostat a couple of degrees and checking my filters, and I saw a difference within a month. If you’re overwhelmed, start with one thing—like scheduling an energy audit or swapping out a filter. It’s also worth chatting with your utility provider; some offer rebates for energy-efficient upgrades like insulation or new furnaces. Over time, these tweaks not only save money but make your home comfier too. Who doesn’t want that?