Heating oil cheaper than gas
Sudden discounts supplied by Helleniq Energy turned things upside down for consumers
With the voluntary and involuntary assistance of refineries, heating oil went on sale on Friday at the price of 1.38 euros per liter, considerably lower than the estimates of the previous days, but 22.1% higher than the starting price last year (€1.13/lt).
At these levels, the additional costs households will need to pay this year for heating will be significantly reduced, since heating oil is the cheapest fuel, at least by today’s standards.
After various shifts as a result of the uncertainty in international energy markets, heating oil has again wrested the title of the cheapest fuel away from natural gas just a few hours before the start of its sales: Helleniq Energy (formerly Hellenic Petroleum) informed trading companies it is offering a discount until end-October, amounting to 6 cents per liter, or 7.5 cents including value-added tax. That brought the heating oil rate from €1.44-1.46/lt down to €1.38, and for EKO gas stations to just €1.31/lt, after the decision of Helleniq Energy to offer an additional 5% discount to its subsidiary.
The path opened by Helleniq Energy as a dominant market player was followed by the country’s other refinery, Motor Oil: Group sources stressed on Friday that its subsidiaries, Avin Oil, Shell and Cyclon, will adjust prices to competition.
Somehow, starting with the state subsidy of €0.25/lt, the double discount voluntarily offered by Helleniq Energy – Greece’s largest refinery with the main shareholder being the Greek government – and the involuntary adaptation of Motor Oil to the competition, heating oil started reaching Greek households at a price significantly lower than expected, and up to 24% cheaper than natural gas.
The price of natural gas remains 74.8% higher than it was last year despite the generous subsidy of €90 euros per thermal megawatt-hour. Those who turn on the gas burner will pay €110-160 euros/MWh in October, up from €102.5 last year. Households using electricity for heating through air conditioners, heat pumps and all kinds of electrical appliances will pay 50% more than last year, at a rate of €160/MWh.
