According to The Christian Science Monitor, Natural gas is the cheapest way to heat a house, costing an average of $1,024 per year in the Northeast. Electric heat costs $1,135, and propane costs $2,386.
Heating oil is the most costly of the four main fuel sources, at $2,526. Only about 6 percent of homeowners in the United States use oil as a primary heat source. Propane use is also decreasing because of the high cost. Oil prices continue rising while natural gas prices decrease, The Christian Science Monitor notes. About half of all homes are heated with natural gas. Electric heating is increasing as well because of cost, with about one-third of homes in the United States using it.