We know the cost of natural gas and what goes into it has been on the minds of our customers. “Why is it higher than normal?” “Does Oklahoma Natural Gas set the cost and profit from it?” “Will we ever see prices drop?” All these questions are important, and as the cost of natural gas decreases by 51% in June ($4.795/dekatherm) from this year’s highest costs ($9.808/dekatherm), we want our customers to be informed on how we continually work to secure gas at the lowest prices possible. After higher-than-normal gas prices this winter, we know the decrease in recent natural gas costs – the lowest since the summer of 2021 – is a relief and we want to share a few things to know about the cost of gas.

  1. The price you see on the “Customer Fuel Cost” line of your bill is referred to as the “Purchased Gas Adjustment” (PGA). This information is also available on our website. This can be a significant portion of your bill and the total fluctuates with the amount of gas you use. This price differs from natural gas spot prices you’ll often see on news sites. That’s because the PGA includes not only the cost to purchase natural gas, but also the cost to transport natural gas to customers like you and the cost to store the natural gas for future use.
  2. Oklahoma Natural Gas does not set the market price for natural gas, and we do not profit from this cost. Our gas supply is competitively bid, which determines the market price. Additionally, transportation and storage costs are either competitively bid or regulated at the federal or state level. All of these costs are billed through the PGA to our customers without markup. 
  3. Several factors go into the market price for natural gas, and it mostly comes down to supply and demand. Just like your coffee and eggs, natural gas prices are subject to the ups and downs of supply and demand. One big market disruption occurred last year when Russia invaded Ukraine, driving market prices to the highest level in 14 years, a spike that lasted most of last year.

Despite what occurs throughout the world, we remain committed to delivering reliable and affordable natural gas service and continue to take the necessary steps to secure the lowest prices for our customers. We hope this information provided some context to help answer your questions.

Looking for ways to save money this summer? Check out our tips here.