Explosive cocktail of hikes in liquid fuels hits households and business budgets

The rally in energy prices has set fire to fuels with drivers – individuals and professionals – but also those who want to buy heating oil now having to put their hand deep in their pocket.

Consumers are now paying 23% more expensive for simple unleaded compared to the beginning of the year, with the average nationwide price having reached 1,768 euros per liter while in January it was 1,437 euros.

In the Cyclades, in fact, drivers have even paid for simple unleaded 95 octane gasoline over 2 euros, at 2,004 euros per liter according to the data of the Price Observatory of the Ministry of Development.

Heating oil soars

But where the increases are really staggering is in heating oil. The international rise in the prices of black gold has launched this year the prices nationwide (according to the market data on November 15) to 1,161 euros per liter from 0.854 in January and 0.794 in mid-November 2020. These are increases of 36% and 46%, respectively. This practically means that in order to fill an apartment building with a tank with 4,000 liters of oil, one will now have to pay 4,644 euros, while last year at such a time the same amount cost 3,176 euros (a difference of about 1,500 euros). In more remote areas and mainly on islands – as again in the Cyclades in fact, the prices of heating oil has reached 1,307 euros per liter. Combined with the gas rally, this winter will seem to be more difficult, at least from an economic point of view in terms of heating.

Diesel fuel on fire

Professionals and others who choose diesel for their travels have seen prices increase in the same period by almost 30% after reaching 1,513 euros per liter (+ 29.6%) from January 4, 2021. In the Cyclades the average In fact, the price has not reached more or less 1.7 euros per liter for diesel.

The increases in LPG have exceeded 31%, breaking the barrier of 1 euro per liter, while comparatively smaller are the increases in unleaded 100 octane gasoline that reach 18% and amount to 1,933 euros per liter.

It is the result of a crude oil rally that has successfully surpassed $ 82 a barrel due to demand and the distortions created by the abrupt opening of the economy in the aftermath of the pandemic.

The increases become more intense as liquid fuels in Greece are charged with Value Added Tax (VAT) but also with excise duty. According to the Ministry of Development, the EFC rate on gasoline and diesel is set at 700 and 410 € / 1,000 lt, respectively from 01/01/2017. VAT from 01-06-2016 amounts to 24%. The Ministry of Development also notes that for heating oil and for a period of 15 October each year until 30 April of the following year, a reduced EFC rate of 280 € / 1,000 lt is set, starting from 15 October 2016. For this reason, consumption is not recorded for these goods from 1 May to 14 October of each year. The EFC coefficient in LPG is set at 430 € / 1,000 kg.