UGI Natural Gas Rates to Rise 7.1% in March Due to Increased Supply Costs

UGI Utilities, Inc. announced a 7.1% increase in natural gas rates for residential customers, attributing the rise to colder temperatures and increased supply costs. The average monthly heating bill will climb from $104.37 to $111.73 beginning March 1, 2025.

The rate adjustment is mandated by law, which requires utilities to pass through natural gas purchase costs directly to consumers without additional markup. This transparency ensures that rate increases reflect actual market conditions rather than utility profit margins.

The price surge could significantly impact households already struggling with rising energy expenses, particularly those with limited or fixed incomes. UGI has proactively addressed potential customer challenges by offering multiple payment assistance options, including budget billing, online account management, and an auto-pay program.

For customers facing financial difficulties, UGI recommends exploring energy assistance programs. The company can help eligible customers apply for federally funded Low-Income Home Energy Assistance Program (LIHEAP) grants and provides resources for energy-saving strategies.

Pennsylvania residents retain the option to shop for competitive energy rates, potentially mitigating the impact of UGI's price increase. The utility serves over 760,000 natural gas and electric customers across 46 Pennsylvania counties, making this rate adjustment potentially significant for a substantial regional population.