Gas prices across the United States are going up in January, as the price of natural gas in the United State has hit a record high of $3.85 per million British thermal units.
The latest figures released by the Federal Energy Regulatory Commission show that gas prices are expected to rise by as much as 6 percent in January as the market’s supply is stretched, with natural gas now being used in just one-quarter of U.S. homes.
That means the price for a gallon of regular gas will be $3,981.70 by the end of January, the FERC said on Wednesday.
That is up from the average price of $2,982.60 the month before.
The average price for an inch of natural-gas has risen to $1,917.00 in January.
That includes $1.19 for a 1,200-gallon tank, and $0.65 for a 750-gallot tank.
Natural-gas prices will rise in response to the increase in demand from China, the world’s second-largest economy.
As a result, the price will likely rise even more as demand increases in China.
In addition to the natural-fuse pricing increase, natural-gases prices are set to continue to fall as consumers continue to reduce the use of conventional gas.
Natural gas prices have fallen to their lowest level since 2008.
Gas companies said they were looking to make the switch to natural gas as a cheaper alternative to coal and coal-fired power plants.
Gas prices are now falling in tandem with the price drops of coal-burning power plants, according to the Energy Information Administration.
Gas prices have been trending lower for some time, but the rate of decline has slowed.
The Energy Information Agency said that gas has been on a downward trend since 2009.