Energy: Increases in electricity and gasoline burn two salaries – Unleaded jumped to 2.3 euros [examples]

An additional one and a half to two basic salaries will be needed by households to cover their income losses from energy inflation.

The prices of gasoline, electricity, heating oil and gas are scorching… family budgets, causing them to increase their annual expenses by 33% to 53%.

The energy crisis that has lasted since the beginning of Autumn is showing its teeth to Greek households in the two months of January-February, since the race for the revaluation of electricity and gas bills has also included fuel and heating fuels.

In fact, the price of unleaded gasoline has even reached 2.29 euros / liter and specifically in the Cyclades or even 2.22 euros / liter in the Dodecanese before rapid developments are precipitated in Ukraine and before Brent oil arrives, as yesterday one breath from $ 100 a barrel.

Energy market players find it difficult to make any predictions about the future course of prices as the situation on the front line of the war between Russia and the West is volatile. With these data no one takes the risk to assess even the maintenance for example of unleaded gasoline at the average levels of 1.87 to 1.88 euros / liter.

Charges

Energy inflation, which has been spreading since last autumn, has been consolidated and concerns about further spending expansion are evident.

Before the outbreak of the day before yesterday in Ukraine, OT processed examples of annual energy costs for a family based on the prices of the Fuel Price Observatory, Eurostat and the HEPI index.

Thus, a household this year on a 12-month basis will pay 1,064 to 1,232 euros more to travel by car, to meet its energy needs with electricity and to be heated with oil or gas. If we take into account that the basic salary in Greece is 663 euros, then it is easy to conclude that energy inflation is on fire; costing one and a half to two salaries a year.

In particular, with the average price of unleaded gasoline at 1.87 euros per liter, in order for a family car to travel 10,000 km a year it will need 800 liters of fuel and will spend 1,496 euros. When last year with a price of 1.52 euros a family had to spend 1,216 euros. That is, in 2022 it will spend 280 euros more money for road travel.

For the annual electricity needs (4,800 Kilowatt Hours) the bills a family will pay are calculated on a 12-month basis, and only the competitive part of the charges (not other included fees) stands at 888 euros, when it paid 625 euros last year. The additional cost amounts to 263 euros or 42%. In the above example, this year’s bill has been calculated with state subsidies included.

Heating

The same family in order to heat its home with oil (1,500 liters during the winter season) will be asked to put their hand deep in their pocket. The cost is of the order of 1,890 euros when last year with a price of heating oil at 0.913 euros it paid 1,369 euros. The charge on an annual basis is 494 euros.

If the household burns natural gas for heat and specifically 12,000 Kilowatt Hours then it will spend 1,182 euros when last year it paid only 493 euros. The bill for the year is 689 euros higher.

In conclusion, the family in this example in order to travel with their car, to have electricity and to be heated with oil will spend 4,274 euros this year against 3,210 euros last year. That is, you will need an additional one and a half basic salary, ie 1,064 euros.

If it uses natural gas for heating instead of oil, it will pay 3,566 euros for all its energy needs, up from 2,334 euros last year. That is, the additional annual expenses are two basic salaries, ie 1,232 euros.