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

Residential natural gas customers of UGI Utilities will experience a 7.1% increase in their monthly bills beginning March 1, 2025, as the utility adjusts its purchased gas cost rates in response to rising supply expenses. The average monthly bill will increase from $104.37 to $111.73, reflecting the impact of colder temperatures on natural gas demand.

The rate adjustment comes as a direct result of increased natural gas supply costs, which utilities are legally required to pass through to customers without additional markup. This transparent pricing mechanism ensures that customers pay only the actual cost of gas procurement, without utility profit margins added to the base rate.

While the rate increase may challenge household budgets, UGI has proactively offered multiple strategies to help customers manage their energy expenses. These include budget billing options, online and mobile payment platforms, and an auto-pay program designed to simplify bill management.

Recognizing potential financial strain, UGI has also highlighted resources for customers experiencing difficulty with heating costs. Low-income and fixed-income households can access various energy assistance programs, including the federally funded Low-Income Home Energy Assistance Program (LIHEAP) grants. Customers are encouraged to explore these support options to mitigate the impact of rising energy costs.

The utility additionally recommends that customers focus on energy efficiency to help offset potential bill increases. By implementing home energy-saving strategies and making targeted efficiency improvements, residents can potentially reduce their overall energy consumption and minimize the financial impact of rising gas rates.

This rate adjustment underscores the ongoing challenges in energy markets, where external factors like weather patterns and global supply dynamics can directly influence residential utility costs. Customers are advised to stay informed about their energy usage and explore available cost management strategies.