May 30, 2023

Athens News

News in English from Greece

Sale of fuel oil started on Friday at a discount

The sale of fuel oil to the public began on Friday with a surprise 6 cents per liter discount provided at the last minute by Hellenic Petroleum refineries (ELPE).

The price was supposed to be 1.42 and 1.45 euros per litre, and after the discount reportedly fell below 1.40. However, fuel is clearly more expensive on the islands due to high transport costs.

After the ELPE decision last night, fuel oil is leaving the refinery at a discount of 7.5 cents per liter: that’s 6 cents + value added tax, while, according to the first estimates, its price will be less than 1.4 euros, according to MASS MEDIA. Depending on the commercial policy of each distribution company or petrol station owner, the price can range from €1.37 to €1.38 per litre.

Last year, at this time, when the distribution of fuel oil began, its price was €1.16/l, and before the end of the winter season, the price of fuel oil reached €1.60/l.

The decision was made on Friday at the last moment, at a time when international oil prices and the dollar fluctuated sharply. Consumers will be supported by a government-announced subsidy of 0.25 euros per liter, as well as heating allowances for eligible eligible households.

Initially, demand is expected to be low due to high prices and relatively warm weather. Based natural gas pricesannounced on Thursday, the initial price of fuel oil is forecast to be 20% higher. Even despite the state subsidy of €0.25/l, many consumers (including not the poorest ones) who wanted to pre-fill their tanks with fuel oil for this winter do not do so.

At the same time, there is also a clear concern that is associated with a huge difference between selling price diesel fuel for vehicles and fuel oil, which, based on today’s data, is approaching 7 cents per liter. Market participants express concerns that smuggling or the use of fuel oil for vehicles may increase in the near future.

On Thursday, the average price for diesel fuel was 2.107 euros per liter, and for gasoline – 2.031 euros. At the same time, international oil prices, after two days of decline, yesterday returned to an upward trajectory, and Brent reached $94.6 per barrel.

According to the Ministry of Finance, a ministerial decree is currently being drafted that will define the criteria, conditions, beneficiaries, lower and upper heating allowances for the coming winter. The ruling is expected to be published in the coming days, and the platform myThermansi must open for applications by early November.

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