By Natural gas remains one of the most important energy sources in the United States, powering millions of homes, businesses, and industries. Whether used for heating, cooking, or electricity generation, natural gas plays a major role in the nation’s energy landscape.
For homeowners and businesses alike, understanding natural gas prices per therm can help with budgeting, energy efficiency, and making informed decisions about utility providers. In this detailed 2025 guide, we’ll explore how natural gas is priced in the U.S., what affects those prices, how costs vary by region, and what you can do to manage your monthly energy bills — all while keeping things clear and policy-compliant.
What Is a Therm?
Before diving into pricing, it’s important to understand what a “therm” means.
A therm is a unit of heat energy used to measure natural gas consumption. One therm equals 100,000 British Thermal Units (BTUs) — or roughly the amount of energy needed to heat 100 gallons of water by one degree Fahrenheit.
Natural gas bills in the U.S. typically measure usage in therms (or cubic feet), making it easier to calculate costs based on the rate per therm.
For example:
- If your gas provider charges $1.20 per therm, and you use 50 therms in a month, your bill for gas usage would be $60 (before taxes and fees).
Average Natural Gas Prices per Therm in the U.S.
As of early 2025, the average residential natural gas price in the United States is estimated between $1.10 and $1.50 per therm, depending on location, season, and market conditions.
Here’s an approximate breakdown:
| Region | Average Price per Therm (2025) | Notes |
|---|---|---|
| Northeast (e.g., NY, MA) | $1.40 – $1.75 | Higher costs due to pipeline and delivery charges |
| Midwest (e.g., IL, OH) | $1.00 – $1.25 | Stable prices, abundant local supply |
| South (e.g., TX, FL) | $0.90 – $1.15 | Competitive market, lower distribution costs |
| West (e.g., CA, WA) | $1.30 – $1.80 | Higher demand, infrastructure fees, environmental surcharges |
Industrial and commercial users often pay lower per-therm prices due to higher volume consumption and negotiated contracts.
What Affects Natural Gas Prices per Therm?
Natural gas prices fluctuate based on a combination of market and environmental factors. Here are the main ones:
- Supply and Demand: When demand increases — such as during winter months for home heating — prices tend to rise. Conversely, mild weather or high production can drive prices down.
- Weather Patterns: Cold winters or hot summers affect gas usage. For example, in colder regions, natural gas is a primary heating fuel, while in some southern states, it powers electricity for air conditioning.
- Production and Storage Levels: The U.S. is a leading producer of natural gas. However, if production drops or storage reserves decline, prices can increase due to limited supply.
- Transportation and Infrastructure Costs: Pipeline capacity and maintenance costs influence delivery prices. Regions farther from production areas (like the Northeast) often pay higher transportation charges.
- Global Energy Market Trends: Although the U.S. is largely energy-independent, international events — like disruptions in global energy trade — can still affect natural gas exports and pricing.
Seasonal Trends in Natural Gas Prices
Natural gas prices typically follow a seasonal pattern:
- Winter (December–March): Prices rise due to high heating demand.
- Spring (April–June): Prices stabilize as demand decreases.
- Summer (July–September): Prices may rise again due to natural gas use in electricity generation for cooling.
- Fall (October–November): Prices generally drop before winter demand begins again.
Many consumers notice that their bills spike during the coldest months — not only due to higher usage but also due to increased per-therm costs from suppliers.
How to Read Your Natural Gas Bill
Understanding your gas bill helps identify how much you’re paying per therm and what additional fees are included.
A typical U.S. gas bill includes:
- Customer charge: A flat monthly fee for service connection
- Gas supply charge: The cost of natural gas per therm
- Delivery charge: Cost of transporting gas through pipelines
- Taxes and regulatory fees: State or local charges added by law
Tip: Your supply rate (price per therm) is often adjustable — especially if you live in a deregulated energy market where you can choose your gas provider.
States with Deregulated Natural Gas Markets
Some U.S. states allow consumers to choose their natural gas supplier, which can lead to more competitive pricing and flexible plans.
States with partial or full natural gas deregulation include:
- Texas
- Ohio
- Michigan
- Georgia
- New York
- Pennsylvania
- California (limited regions)
In these states, customers can compare rates, contract terms, and renewable gas options to find a better deal.
How to Lower Your Natural Gas Costs
There are several practical ways to reduce your gas expenses, even when prices per therm rise:
- Improve Home Insulation: Seal leaks around windows, doors, and ducts to retain heat.
- Upgrade to Energy-Efficient Appliances: Modern gas furnaces and water heaters consume less fuel while maintaining comfort.
- Use a Programmable Thermostat: Adjusting your thermostat by just a few degrees can reduce energy use by 10–15%.
- Schedule Regular Maintenance: A well-maintained furnace or boiler runs more efficiently and safely.
- Compare Gas Suppliers: If you live in a deregulated state, switching providers could lower your rate per therm.
Natural Gas vs. Other Energy Sources
When comparing energy options, natural gas remains one of the most cost-effective and reliable fuels in the U.S.
| Energy Source | Average Cost (Per Equivalent Therm) | Notes |
|---|---|---|
| Natural Gas | $1.20 | Efficient and widely available |
| Electricity | $3.50 | Clean but higher cost per unit |
| Propane | $2.50 | Common in rural areas |
| Heating Oil | $4.00 | High cost and environmental impact |
This cost efficiency is one reason natural gas continues to power more than 40% of U.S. electricity generation and heat nearly half of U.S. homes.
Future of Natural Gas Prices in the U.S.
Experts predict that natural gas prices per therm in 2025 will remain relatively stable, with minor seasonal fluctuations. The combination of high domestic production, improved storage capacity, and new pipeline infrastructure supports steady supply.
However, long-term prices may depend on:
- Transition to renewable energy sources
- Federal and state environmental policies
- Export growth of liquefied natural gas (LNG)
- Technological innovations in gas extraction and storage
Consumers should expect modest variations but no major spikes barring global disruptions or extreme weather conditions.
Final Thoughts
Understanding natural gas prices per therm in the USA is essential for managing household energy costs in 2025 and beyond. By staying informed about pricing trends, improving home efficiency, and exploring available suppliers, you can take control of your energy budget and enjoy reliable heating throughout the year.
Whether you’re a homeowner, renter, or small business owner, small changes — like comparing providers or adjusting thermostat settings — can make a big difference in your monthly savings while maintaining comfort and sustainability.
