Soaring Prices

Just Like Gas: Government Should Cap Heating Prices

Heating prices have risen dramatically—for heating oil alone, by 75 percent compared to the previous year.(Bild: Pressefoto Scharinger/Daniel Scharinger)

Just before the start of the heating season, prices for heating oil and pellets are skyrocketing. The Upper Austrian Chamber of Labor is now calling for government intervention and an increase in the heating cost subsidy. Instead of the current 200 euros, affected households should receive 700 euros in the future.

Those who heat with heating oil are currently having to dig deep into their pockets. Since the end of June, the price has risen by an average of 48.3 percent; compared to September of last year, the increase is as high as 75.4 percent. Owners of pellet heating systems are also having to pay significantly more: Prices have risen by 8.2 percent since June and by as much as 34 percent over the past year. And this is happening right now, just as the heating season is about to begin—or has already begun in some places. 

For Chamber of Labor President Andreas Stangl, this is alarming: “A warm home should not be a luxury. When prices for heating fuel rise so sharply within a year, it poses massive financial challenges for many people,” he warns. Politicians must act before the heating season really gets underway.

Specifically, the Chamber of Labor is calling on the federal government to impose a price cap on heating oil, modeled after the fuel price cap. This would involve limiting profit margins and reducing the mineral oil tax. Prices for pellets should also be capped by the government. It is incomprehensible that prices are rising so sharply despite sufficient raw material supplies.

700 Instead of 200 Euros in Heating Cost Subsidies
The Chamber of Labor also has a clear demand for the state of Upper Austria. For the past heating season, the heating cost subsidy was only 200 euros per household. In light of the massive inflation, this amount should now be increased to 700 euros.