European households face sharply higher heating costs as winter approaches, with heating oil prices averaging €1.742 a liter across the European Union and Brent crude trading around $105 a barrel, prompting Greece to prepare emergency subsidies aimed at easing the burden on consumers.
European Commission data reveal striking differences in heating oil prices across the bloc, with a gap of as much as €1.45 a liter between the most expensive and cheapest markets.
Denmark tops the list at €2.45 a liter, roughly 41% above the EU average, followed by Portugal at €2.204, Italy at €2.063 and Finland at €2.048.
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France stands at €1.907 a liter, while Germany, Europe's largest economy, records €1.726. Spain is considerably cheaper at €1.495, and Malta has the lowest reported price at €1 a liter.
The disparities reflect differences in taxation, distribution costs and national energy-support policies.
Greece isn't included in the Commission's latest comparative figures, but domestic market estimates suggest heating oil could initially cost between €2 and €2.05 a liter without government intervention.
Athens wants to bring that price below €1.75 through a combination of state subsidies and contributions from oil refiners.
Under legislation submitted to Parliament, the government plans to subsidize heating oil from Oct. 15 through Oct. 31, with an option to extend the measure if energy prices remain elevated.
The subsidy will be applied at the refinery level, before value-added tax, and passed through fuel distributors and retailers to consumers. The precise amount will be determined by a ministerial decision.
Industry estimates suggest that a subsidy of eight euro cents a liter before VAT could reduce retail prices by approximately 10 cents, assuming the full benefit reaches consumers.
Based on heating oil consumption during the second half of October last year, the measure could cost the government approximately €8.5 million.
Greece is also preparing a second layer of assistance through means-tested heating allowances, with final decisions expected Oct. 14.
