Electricity and heating cost almost 50 percent more than in the same month last year. The energy agency announced that heating oil, wood pellets and firewood in particular were becoming more expensive. The price increases for electricity were moderate, and relief measures would take effect here. However, numerous suppliers have announced price increases that are likely to materialize in September.
Household energy prices rose 48.8 percent year-on-year, up 4.8 percent from June, the press release said. The prices for all energy sources included in the energy price index (EPI) have risen. “Energy prices thus remained the main drivers of inflation,” wrote the Energy Agency.
Despite the tense situation on the wholesale markets, electricity prices rose relatively moderately compared to July of the previous year. This is due to relief measures that have already been implemented during the year taking effect. The Energy Agency referred to the elimination of green electricity costs, the reduction in electricity charges and the energy cost compensation. Developments in wholesale are usually passed on to households with a delay, although numerous energy suppliers have recently announced or implemented price increases. The Energy Agency therefore expects large price increases for households in September.
According to the EPI, super petrol cost 58.7 percent more in July than in the same month last year, compared to June the price rose by 2.3 percent. For a full tank (50 litres), Austrians had to spend an average of over 100 euros, which was 40 euros more than in the previous year. Diesel was 66.4 percent more expensive compared to July 2021, compared to June there was a price increase of 3.5 percent. The price of heating oil has meanwhile more than doubled year-on-year (up 108.5 percent), and the Energy Agency put the increase in price compared to June at 3.2 percent.
The price increases for heating oil and fuel could only be partly explained by the rise in crude oil prices. In addition to the weak euro exchange rate compared to the dollar, the profit margins of refinery operators have increased substantially, wrote the energy agency, referring among other things to the results of the investigation by the Federal Competition Authority (BWB). For August, however, the energy experts are expecting a slight relaxation in prices at the pumps.
The Energy Agency recorded significant price increases for wood pellets and firewood in July. Pellets have become more expensive by 75.2 percent year-on-year, compared to June the increase was 15.4 percent, although pellet prices have been comparatively stable in the past. The reason for the increase is the higher costs for fuel and electricity, which are now also reflected in pellet production. At the same time, the demand for pellets has increased recently, and the high prices in Austria can mainly be explained by limited production and logistics capacities. In the next 2 years, eleven new pelleting plants are to go into operation in this country.
Firewood cost 50 percent more year-on-year, with prices up 13.4 percent month-on-month. This is also due to increased demand, while at the same time there are no exports from Russia. However, according to the energy agency, the prices for firewood vary greatly, so it pays to compare offers carefully. District heating rose by 17.8 percent year-on-year, up 3.9 percent by June 2022.
Source: Nachrichten
