UGI Penn Natural Gas announced Friday that natural gas rates as of today will increase 6.3 percent.

UGI will charge $5.20 per thousand cubic feet, Mcf, of natural gas, up from $4.89 per Mcf charged during the last quarter. The price will remain in effect until May 1. The rate reflects UGI’s cost to purchase the gas.

The hike drives the average monthly bill for a household using 8.9 Mcf of natural gas to $94.17, an increase of 3.1 percent.

One would expect natural gas prices to be heading down as winter ends, demand eases and temperatures rise. However, UGI spokesman Joe Swope said rates are backward looking, more like a 12-month rolling average. While the record cold temperatures this winter have sent wholesale gas prices soaring in recent months, the UGI rate is intended to be an average and insulate customers from short-term volatility.

“We saw a significant increase in wholesale price as we experienced persistent low temperatures,” Swope said. “We are hopeful that as the weather gets warmer, gas prices will moderate.”

January was 18 percent colder than normal. February has been called the coldest in a decade.

UGI is on the low end among Pennsylvania gas utilities that have announced rates this year. On Feb. 1, Peoples TWP announced a rate of $5.66 per Mcf; National Fuel Gas Co. announced a rate of $5.47. In January, Peoples Natural Gas announced a rate of $5.11.

UGI Penn Natural Gas serves 162,000 customers in 13 counties.

dfalchek@timesshamrock.com

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First Published: March 1, 2014, 1:24 p.m.