Petroleum Products Caused Energy Price Increase in June

Heating oil and fuels were the price drivers, while prices for electricity and natural gas slightly decreased compared to the previous month.

The escalation of the military conflict in the Middle East at the beginning of June increased the price of heating oil by 2.5 percent compared to May, but there were also price increases for gasoline (plus 2.2 percent) and diesel (2 percent) in June. However, on a yearly basis, heating oil cost 9.3 percent less, gasoline was 5.8 percent cheaper, and diesel was 5.1 percent cheaper.

"The global energy markets have calmed significantly since the peak of the energy crisis in 2022, but they remain vulnerable to external shocks," notes Lukas Zwieb, an energy economics expert at the Austrian Energy Agency. "Ongoing geopolitical uncertainties and weather extremes continue to lead to volatile prices. Conflicts like the one in June can therefore cause noticeable price jumps."

Expensive Electricity

On a yearly basis, the still high electricity price drove the index up: Austria's households paid 0.4 percent less for electrical energy this June than in May. However, the elimination of government support and higher network charges ensured that the electricity price was still 35.7 percent higher than a year ago.

For natural gas, the Austrian Energy Agency recorded a price decrease of 0.3 percent compared to the previous month, and on a yearly basis, the price fell by 9.1 percent. Firewood remained price stable on a monthly basis but became 6.2 percent cheaper compared to June 2024. There was no price change for district heating on either a monthly or yearly basis.

Wood pellets cost 0.7 percent more in June than in May, but compared to the previous year, households saved 0.9 percent here. Those who rely on wood fared even better: The price remained stable compared to the previous month, and on a yearly basis, households saved 6.2 percent here.

(APA/Red)

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