Energy prices are falling: heating oil and diesel are significantly cheaper

According to the Austrian Energy Agency, the energy price index (EPI) fell by 2.2 percent month over month. Responsible for this were in particular: Declines in the price of heating oil and diesel. However, energy remained a key driver of inflation year-on-year, with an increase of 9.8 percent.

According to the energy agency, there was an easing in May in particular for mineral oil-based energy sources. Compared to April, heating oil was 9.5 percent cheaper and diesel fuel cost 7.2 percent less. Premium gasoline, on the other hand, rose in price by 2.3 percent.

Compared to May of the previous year, prices in this segment were still much higher: heating oil cost 53.7 percent more, diesel by 30.7 percent and premium gasoline by 21.3 percent.

Electricity is cheaper than a year ago, pellets are much more expensive

Electricity prices for households fell by 0.7 percent in May compared to April and were therefore 10.3 percent below the previous year’s level. The high feed-in from photovoltaics and hydropower, which is typical for this time of year, as well as reduced taxes had a dampening effect on prices. Gas and district heating only became slightly cheaper month-on-month at minus 0.2 and minus 0.1 percent respectively. Solid fuels, however, rose slightly in price compared to April, with firewood increasing by 0.6 percent and wood pellets increasing by 1.3 percent. Pellets cost 30.6 percent more year-on-year.

Further price declines expected

Further price declines are expected in the coming months. The latest developments surrounding the US-Iran agreement and a gradual reopening of the Strait of Hormuz are not yet taken into account in the May figures, explained Lukas Zwieb, energy expert at the Energy Agency. However, corresponding reports would already lead to significant price declines on the international crude oil markets and domestic gas stations. If the agreement holds and the supply of crude oil and liquid gas starts again, the price pressure for domestic household customers is likely to decrease further.