Government caps heating oil price amid soaring fuel costs, critics say policy favors big firms
The prime minister pledged to keep heating oil at 1.75 €/l while fuel prices surge, but analysts argue the move exploits EU fiscal rules and benefits large corporations over households.
Fuel costs are rising rapidly, with developments in the Middle East likely to trigger additional hikes in the coming months. In a recent speech, the prime minister promised that heating oil would not exceed 1.75 €/l, a price many households deem unaffordable even with existing subsidies. The eligibility rules for those subsidies, however, leave a substantial share of needy families uncovered.
The administration invokes European fiscal rules as a reason to refrain from wider measures, yet analysts point out that those rules limit spending based on tax revenues and do not prevent price adjustments, such as modifying VAT rates. They argue the government’s choice to maintain current household buying power primarily serves to steer economic activity toward large, inelastic sectors controlled by powerful firms, squeezing small businesses and freelancers. The article urges voters to scrutinize party platforms, highlighting ELAS’s detailed program as a viable alternative.
Why it matters
It shows how fuel policy and fiscal rules can shape household costs and favor large economic players.
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