Greeks will pay 20% less for natural gas than for oil to heat homes

Providers have locked the natural gas bills for the month of October, the first month of the cold and heating season.

And while providers feel confident with prices at 0.11 euros per kilowatt hour, heating oil traders see market prices fluctuate wildly on a daily basis…

This is what business sources in the sector are reporting to OT, giving as an example the big drop in the Platts price of heating oil yesterday by $120 per ton. “The decrease is a mystery… and without any reason,” the same executives told OT. They continued saying that “the volatility of prices cannot be predicted, as it is a daily occurrence and with large ups and downs”.

Almost a day before the premiere of the Greek heating oil market and provisional estimates show a price range between 1.40 and 1.50 euros per liter. Yesterday, the prevailing scenario indicated 1.45 euros per liter, according to the same sources.

It is noted that the above prices have been calculated to include the state subsidy of 0.25 euros/liter.

Natural gas

According to OT data, Natural gas providers have finalized tariffs for households close to 0.11 euros/kWh.

This price is lower than their initial estimates which indicated 0.12 to 0.13 euros/kWh.

Retail tariffs seem to be lower both due to the drop in TTF and the large subsidy of natural gas provider DEPA Commercial which is 0.09 euros/kWh.

The comparison

In order to compare the cost of both heating fuels, the unit of measurement for oil should be converted from liters to kilowatt hours. If it is assumed that the starting price will be at 1.45 euros per liter, its corresponding value in the electricity measurement unit is at 0.137 euros/kWh.

The price of natural gas, as mentioned above, is 0.11 euros/kWh, so heating with this fuel will be 20% cheaper than oil.