4 Reasons Your Gas Bill Is So Darn High -- and What You Can Do About It

Energy prices have soared over the past few years, putting a lot of pressure on many Americans' personal finances. About 60 million households use natural gas to heat their homes, and last year, prices jumped, partly because the gas supply was lower.

The U.S. Energy Information Administration says last year's residential gas prices were the highest in 10 years. If you find your gas bill is creeping higher this winter, here are a few reasons why and what you can do to help lower it.

1. Commodity prices fluctuations

Constellation Energy, an electric and gas company, says that the main driver of high gas prices is the available gas supply. Many things can affect gas supply, including low production -- which the U.S. had last year -- major weather events, and even geopolitical disruption.

Gas companies manage some of these factors by purchasing future gas supplies at lower rates, which means gas used during the winter could have been purchased at lower prices many months earlier.

2. Old appliances

If you have older gas appliances, it's possible they don't work as efficiently as newer ones, and that could be costing you. If you can afford it, consider replacing an older dryer, water heater, or furnace to minimize gas usage.

Buying new appliances may not be possible for everyone, so another option is to perform regular maintenance on your gas furnace. Get it cleaned and inspected annually to keep it running efficiently, and make sure to replace the air filter regularly.

3. Lack of insulation and old windows

If your home is older, it may not have enough insulation to trap in the heat your furnace generates. This will cause your furnace to run longer, burning up more gas and causing your gas bill to climb higher.

Old windows can also contribute to a higher gas bill. The Department of Energy says heat loss from windows can contribute 25% to 30% of residential heating use.

4. The thermostat is set too high

This one seems obvious, but it can be easy to set the heat too high, especially at night when you're not awake to know when the heat comes on.

I usually keep my heat set low at night, but recently I lowered it an extra degree by throwing an extra blanket on my bed. The savings rate varies, but you could save 1% to 3% on your energy bill by lowering the thermostat by just one degree.

How to lower your gas bill

The good news is that gas prices are expected to be cheaper this winter. The Wall Street Journal recently reported that the gas in storage is 5% higher right now than the five-year average.

This is helping to lower gas prices across the country and could result in heating bills being 21% lower this winter compared to last winter. But if you still find your bill is too high, here are some practical ways to lower your gas bill:

• Lower your thermostat at night
• Replace older appliances
• Service gas appliances regularly
• Turn down your water heater tank temperature to 120 degrees
• Replace your furnace air filter at least once every three months
• Make sure heat can circulate by moving furniture away from vents

While the main driving force behind gas prices -- supply and demand -- is out of our control, taking a few steps above could help bring your monthly gas bill down. And if you need additional assistance, government programs could help with your monthly energy bills.