UGI Utilities, Inc. announced today that its purchased gas cost rate will increase beginning December 1, 2025, resulting in a 0.9% rise in the average residential heating customer's total bill. The increase, smaller than previously anticipated, will raise the average monthly bill from $118.43 to $119.49.
The adjustment reflects higher natural gas supply costs in the wholesale market, which UGI passes through to customers without markup, as regulated by the Pennsylvania Public Utility Commission. While the increase is modest, it underscores ongoing volatility in energy markets that could impact household budgets during the winter heating season.
UGI Utilities serves more than 760,000 customers across Pennsylvania and is a subsidiary of UGI Corporation. The company emphasized that the purchased gas cost rate is reviewed quarterly and adjusts based on market conditions. For more information, customers can visit UGI's website or follow the company on Facebook and Twitter.
This announcement comes as natural gas prices have fluctuated due to supply constraints and increased demand. The 0.9% increase is lower than some previous adjustments, providing some relief to customers who have faced higher energy costs in recent years. However, any increase in utility bills can strain household finances, particularly for low-income families.
UGI encourages customers to explore energy assistance programs and payment plans if they struggle to pay their bills. The company also offers tips for reducing energy consumption, such as lowering thermostats and sealing drafts, to help mitigate the impact of the rate change.
The new rates take effect on December 1, 2025, and will be reflected in customers' January 2026 bills. UGI will continue to monitor market conditions and adjust rates as necessary in future quarters.
