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Heating fuel is becoming cheaper

23 October 2014 / 11:10:35  GRReporter
4113 reads

After several years of minimal use of central heating because of the high cost of fuel oil, it is expected that the falling international oil prices will bring down the oil prices in the Greek market too.

According to a publication of the Greek daily "Kathimerini", over the past three weeks the retail prices of petrol, diesel and heating oil have gradually fallen and have already reached before-crisis values.

Only a week before the official start of heating oil distribution, its price is already 1.03 euro per litre, as it was at the beginning of the period 2010-2011. At many stations, prices are even lower than 1 euro per litre.

For those Greek consumers who will receive an allowance for heating oil due to their low incomes, the cost is 0.68 euro per litre, whereas a week ago it was 0.71 euro. In big cities, the price has fallen to 0.65 euro.

Unleaded petrol is also sold at 2010 price levels. Yesterday, the average price per litre was 1.55 euro and many stations offered it at under 1.50 euro whereas last Friday it was 1.622 euro per litre. The price of diesel is lower too as yesterday it fell to 1.220 euro per litre.

The good news does not end there. Forecasts indicate another drop in the international price of Brent, which is currently $ 86 a barrel. It is expected that this will lead to a further reduction in retail prices in Greece and will reinforce the expectations of rising demand and of recovering some of the losses of retailers over the past five years.

Despite the high seasonal temperatures, there is a stir in the market for heating oil. Indicative is the fact that the applications for the granting of heating oil allowances have increased compared to last year.

Representatives of the fuel market account for another major difference compared to previous years, which will result in an increase in demand. The fact is that the majority of the households have no stocks of fuels. Until last year, the same people provided themselves with oil in April to avoid the higher prices in October. According to them, the most crucial factor in the demand for heating oil is the weather and they hope that the coming winter will not be as warm as last year.

As for prices at the European level, Greece is second only after Bulgaria in terms of the highest prices of heating oil before taxes. The price value after excise duties and taxes ranks Greece fifteenth in Europe, as shown by the latest comparative data.

In terms of petrol prices after taxes, Greece ranks third after Italy and the Netherlands, and tenth in terms of prices before taxes and charges. The increase in petrol demand, however, is a fact and the increased road traffic proves this too.

A significant increase is expected in natural gas consumption for household heating. This is largely due to the decision of the Ministry of Development to finance the changing of oil boilers with natural gas boilers, and to the law that allows consumers to install individual gas boilers in residential blocks. The positive impact of the decline in oil prices on natural gas prices will be apparent within about three months.

Tags: EconomyDecline in pricesOilHeating oilPetrolNatural gas
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