Fuel oil: pricing and concerns caused by the crisis in the Middle East

According to market sources, many people may begin actively purchasing fuel oil with the start of the heating season.

At the start of winter, energy costs for heating oil and natural gas were lower than last year, while the cost of a kilowatt-hour of electricity has increased slightly. However, events in the Middle East and their impact on international energy prices are raising concerns about how prices will shape this winter.

Heating oil: forecasts and expectations

According to oil market estimates, the price of heating oil, taking into account current world prices and the dollar-euro exchange rate, may approach 1.11 euros per liter. For comparison: in October last year the starting price was 1.3-1.35 euros. It should be noted that every year Heating oil will be available on the market on October 15. Starting price in October this year will depend on the situation on the international market before that time.

Weather conditions across much of Greece remain favorable for consumers, but market sources suggest many may rush to purchase fuel oil early in the season if prices remain lower than last year to avoid possible price increases.

Natural gas and electricity prices

Natural gas prices were also lower than last year: 6-7 cents per kilowatt hour (including taxes and regulated fees) compared to 7-8 cents last year. Electricity prices are slightly higher, reflecting corresponding changes in wholesale trading. The average price in September this year was 112.35 euros per megawatt-hour, compared to 101.95 euros last year. The retail price (including taxes and other fees) last October was close to 24 cents per kilowatt-hour, and this year it is about 26 cents.

Alternative heating sources

A comparison of alternative fuels shows that natural gas is the most economical heating source compared to oil and electricity. However, in many cases, central heating has been virtually abandoned since the crisis, and many households use electricity (mostly air conditioning) as their main source of heating.

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