By Chrysostomos Tsoufis

Reduced by 15% according to the indications so far it seems to be its price heating oilwhich goes on sale tomorrow, October 15th. The price in urban centers it will be close to €1.17/liter -slightly lower in urban centers- from €1.35/liter last year. In fact, this is the 2nd consecutive year of de-escalation of its price as in October 2022 its availability started at €1.41/liter and in fact after a double subsidy at the pump from public funds and refineries.

That €1.17/litre could even be better if it weren’t for the recent events in the Middle East that have interrupted oil’s steady, slow-paced decline.

Since September 30 and 71 dollars/barrel, black gold has climbed to 79 dollars and of course the market is holding its breath because any strikes, Israeli or Iranian, on energy facilities will raise prices and 1.17€/liter of heating oil will be a thing of the past in just a few hours.

The government, however, monitors the course of prices and is ready to intervene in the event that the fragile balance that has been established is disturbed.

However, since there is no subsidy, the only support for households is heating oil, which concerns all types of fuel, such as natural gas, LPG, firewood, biomass and thermal energy through district heating. The payment of the allowance requires purchases of twice the value of the entitled amount until March 31, 2025. In the following days, the issuance of the KYA is expected for the details of its payment and the start of applications.

The allowance it will vary between €100 and €800 (it reaches €1000 in the 2-3 coldest regions of Greece where the energy needs are the greatest.
The final amount of the allowance is obtained by multiplying the base of 350 by the so-called degree day factor which is different for each region of the territory depending on how cold it is. B.C. An unmarried resident of Karpenisi will receive €378. The same beneficiary in the municipality of Athens would receive €150.5. The allowance is increased by 20% for each child.

The heating allowance will be given based on the following income criteria:

  • €16,000 for the single
  • €24,000 for the married person with an increase of €5,000 for each child.
  • For a single-parent family – without the child supplement – the limit is set at €26,000

There is also a property limit, €200,000 for unmarried beneficiaries and €300,000 for married ones. The forecast in the draft budget refers to an expenditure of 250 million euros.

The changes to the heating allowance announced by the financial staff do not change the philosophy of the allowance which last year received 1.3 million households.

Just like last year – barring a shocking unforeseen event – the allowance will be between €100 – €800 with an additional €1000 for the coldest areas. It is also increased by 20% for each child.

This year, the doubling of the allowance is NOT valid for those who “gave up” natural gas to switch to natural gas.

The final amount of the heating allowance is obtained by multiplying 350 by the so-called degree day factor which is different for each region of the territory depending on how cold it is. That is why the allowance in Preveza is different from the allowance in Katerini for a family with the same number of members and the same income criteria.

The income criteria which remain the same.

  • €16,000 for the single
  • €24,000 for the married man
  • This year, however, the income criterion is being expanded from €3,000 to €5,000 for each child.
  • For a single-parent family – without the additional child – the limit is set at €26,000

At the same time, this year a cutter is introduced for natural persons who carry out business activity so that if they have an annual turnover of more than €80,000 they are not eligible.

*It has not yet been clarified whether for new beneficiaries – those who submit an application for the first time this year – the limits will be lower, €14,000 for the unmarried and €20,000 for the married without children, as was the case last year.

In any case, there is also a property limit, €200,000 for unmarried beneficiaries and €300,000 for married ones. In total, the measure will cost €237m (from €280m last year) and the finance ministry will at least subsidize the pump, citing the lack of fiscal space.

In his informative note, however, he hastened to add that although oil prices are currently a little higher than last year at this time ($93.4 this year compared to $91.4 last year in October), the estimate is that the price of heating oil this year will be close to the same levels as last year after the double discount from public funds and refineries.
Last year the sale of heating oil started at €1.41 after the 2 discounts. According to the market factors, if it were placed today, it would be at €1.55.

For this reason, the government has chosen to direct the available resources to measures such as an increase in disability benefits, the personal difference allowance for pensioners and an increase in the minimum guaranteed income.

At the same time, this year a cutter is introduced for natural persons who carry out business activity so that if they have an annual turnover of more than €80,000 they are not eligible.