UGI Utilities, Inc. has announced a smaller-than-expected increase in the purchased gas cost rate, effective December 1, 2025. The adjustment, driven by rising natural gas supply costs, will result in a 0.9% increase for the average residential heating customer receiving gas supply from UGI. This will raise the total average monthly bill from $118.43 to $119.49, as detailed in the official announcement available here.
The purchased gas cost rate reflects the actual cost UGI pays to acquire natural gas for its customers. While the company seeks to minimize volatility, market conditions have necessitated this modest increase. UGI serves more than 760,000 customers as a natural gas and electric utility, and this change underscores the broader trends in energy pricing affecting households. The company noted that the increase is smaller than initially anticipated, providing some relief compared to more drastic adjustments seen in other regions.
This announcement comes amid a period of fluctuating natural gas prices, influenced by supply constraints and seasonal demand. For consumers, even a small percentage increase can impact household budgets, especially during the winter heating season. UGI emphasized its commitment to providing reliable service while managing costs, as reflected in the company's updates on Facebook and X.
The rate change will take effect automatically for customers on December 1, 2025. UGI encourages customers to visit their website at www.ugi.com for more information on energy efficiency programs or payment assistance options. The company's focus remains on balancing cost recovery with customer affordability, a challenge faced by utilities nationwide as energy markets evolve.
