IPTO warns of up to 70% increase in heating oil prices

Thodoris Tsakiris, Director of International Relations at IPTO, has warned of a potential 60% to 70% surge in heating oil prices compared to last year. He emphasized the urgent need for state intervention to mitigate these costs.

The primary concern lies in the diesel market. Europe faces limited capacity to replace lost imports, particularly if the United States implements an embargo or restricts diesel exports. Currently, the US accounts for approximately 11% of Europe's diesel imports and 22% of its crude oil imports. Tsakiris noted that even a hint of supply disruption can cause prices to spike rapidly, citing an 8% increase within hours of recent discussions.

Additional pressures include Russia extending its ban on petroleum product exports until late October. Furthermore, Europe has seen a 30% decline in refining capacity over the last 25 years, limiting its ability to find alternative suppliers. While state subsidies may offer temporary relief, Tsakiris described them as ‘aspirin’ and called for broader measures to address the underlying energy crisis.