Natural gas regains place as lower-cost heating option compared to oil

Natural gas heating has regained its place as a lower-cost heating option to heating oil, courtesy of a gas subsidy support. At current price levels, natural gas heating is estimated to be approximately 20 percent cheaper than heating oil.

Gas suppliers have set their October prices for households at levels of about 0.11 euros per KWh, unchanged from last winter. Subsidies offered by state-controlled DEPA Commercial will reduce this price level to 0.09 euros per KWh. Without any subsidy support, gas prices for household heating would just about double to 0.21 euros per KWh.

Unlike gas suppliers, heating oil suppliers have not been able to set their prices, despite the fact that winter trading for this fuel begins in two days, as a result of wildly fluctuating prices in markets, making it impossible to make projections.

Given the current market conditions, heating oil prices will be set anywhere between 1.40 and 1.50 euros per liter, a level of about 1.45 euros per liter seeming most probable.

These heating oil price levels take into account state subsidies of 0.25 euros per liter. Without the state subsidy support, heating fuel would reach between 1.65 and 1.75 euros per liter.