ECONOMY

Heating oil tax to rise

Heating oil prices are set to soar in October by an additional 40 percent compared to today?s rates, as the Finance Ministry intends to level the tax for the fuel with that of diesel in a bid sto beat tax evasion.

Currently the going rate for heating oil averages at 1.046 euros per liter, according to the Development Ministry?s price observatory, while the equivalent rate for diesel stands at 1.591 euros/l. Last October a liter of heating oil cost 90 cents, while a year ago it was around 65 cents.

Deputy Finance Minister Pantelis Economou said that the leveling down would take place at 80 percent of the tax imposed on diesel, but in case public revenues allow it, that might eventually be at a lower rate.

He added that a heating oil allowance will be provided next winter, but he did not specify which social groups would be entitled to it. At any rate, this will likely be decided by the government to emerge from next month?s elections.