Heating oil: The sale starts on Friday – Everything that changes in the subsidy

By Chrysostomos Tsoufis

Can the distribution of heating oil start on Friday, however, the platform for applications for the heating allowance is expected to open at the end of November and the first big payment is expected at the end of December. The Ministry of Finance wants the purchases to proceed first, as in order to receive the allowance, one must not only have completed the purchase but he must have bought twice the amount of oil of the allowance corresponding to him. Therefore, there is not going to be an advance payment for last year’s beneficiaries as was the case in previous years and this is the first major difference this year.

The second big difference has to do with the income criteria. Whereas for the old ones – that is, those who received a heating allowance last year regardless of whether they burned oil or natural gas – the expanded income criteria will apply (€16,000 for single, €24,000 for married and €3,000 additional for each child), for the new ones – that is, those who will apply for the first time this year – according to information, it seems that last year’s income criteria will apply (€14,000 for single, €20,000 for married and an additional €3,000 for each child). These “new” beneficiaries belong to the pool of those who used electricity to heat themselves last year and, of course, were not entitled to a subsidy and now the Ministry of Finance wants to “turn” them to oil.

Those who submit a declaration for the first time this year and those who received last year as well but instead of natural gas, will burn heating oil this year will also be the ones who will receive DOUBLE the allowance which is the third and most important difference compared to what has been in force until now.

A smaller difference compared to previous years is that this year those who burn kerosene will also be subsidized

The base allowance for this year’s heating oil is increasing from €300 to €350 and it fluctuates according to the special coefficient of each region – the famous degree days – which starts from 0.12 and reaches up to 1.62 depending on how cold it is. The resulting amount is increased by 20% for each child. The largest amount of allowance that one will be able to get this year is €800 or €1,600 for those who will be entitled to a double allowance.

The total fund for the allowance has been budgeted to €300m (from €174m) and is expected to be distributed to approximately 1.3 million households. The relevant ministerial decision that will determine the details is expected within the next few days.

Based on the estimates of the most pessimistic of the market, heating oil even after the 25-cent subsidy at the pump will exceed €1.60/liter when last year it had “premiered” at €1.15 to close at €1.60/liter in April.

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