The process of determining the expense associated with using natural gas involves several factors. These include the volume of gas consumed, typically measured in cubic feet or therms, and the price per unit volume charged by the natural gas provider. Additional charges, such as distribution fees, service fees, and taxes, must also be considered. For example, a residential customer who uses 100 therms of natural gas in a month, with a price of $1.20 per therm, a distribution fee of $15, and taxes of $5, would have a total expense of $140 for that month.
Accurately understanding the expense of natural gas consumption is vital for effective budgeting and energy management. It allows individuals and businesses to track their energy usage, identify potential areas for conservation, and make informed decisions regarding energy efficiency investments. Historically, the fluctuating price of natural gas has underscored the need for consumers to understand and manage these expenses effectively to mitigate the impact of price volatility on their budgets.