The support measures concerning fuel, heating oil, and the heating allowance for the 2026-27 period will result in price reductions, depending on the trajectory of international oil prices. The government has announced a reduction in fuel prices along with a 30% increase in the heating allowance for the 2026-27 period. Key examples include a five-euro discount on 50 litres of unleaded petrol and a €400 discount on the purchase of 1,000 litres of heating oil. According to the heating oil price reduction, some households stand to benefit doubly — both from a lower market price for heating oil and from the increased financial support provided by the heating allowance.
Support measures: The heating oil price discount
The announcement regarding the intervention in heating oil prices, effective from 15 October when it becomes available, highlights the full scope of the price reduction. The average starting price was estimated at €1.95 per litre; however, the 20-cent government subsidy combined with an equivalent amount to be absorbed by refineries is expected to bring the price down to around €1.55. The government has stated that the price of heating oil will range between €1.50 and €1.60 per litre — though this is based on current conditions, as fluctuations in international oil prices and regional supply factors may affect final prices.
Fuel discounts: Differences between petrol and diesel
A price reduction has been announced for motor fuels — petrol and diesel — with no eligibility requirements, applying automatically at the pump for all consumers. The volume purchased is a key factor in the total savings. For diesel, the total discount amounts to 20 cents per litre, of which 15 cents come from the state subsidy and the remaining 5 cents are absorbed by refineries. For 95-octane unleaded petrol, the new state subsidy is set at 10 cents per litre.
How does the saving add up? A driver who consumes 150 litres of unleaded petrol during the subsidy period will save €15 from the state subsidy alone. Similarly, for 150 litres of diesel, the total relief amounts to €30. The discounts are applied directly to the retail price, with no application process required from consumers. The subsidy on diesel and heating oil covers the period from 15 to 31 October, while the subsidy on unleaded petrol begins on 17 October and also ends on 31 October.
What households will receive from the heating allowance
The government’s intervention for the 2026-27 period includes a flat 30% increase in the heating allowance. The maximum amount, previously set at €1,200, will now rise to €1,560. As a result, a household that would have been entitled to €500 under the previous rates will now receive €650.
These figures reflect the 30% increase applied to each eligible amount and do not imply that all households receive the same level of support. It is worth noting that the increased allowance is not limited to households that heat with oil. It also covers those who use electricity, natural gas, firewood, wood pellets, and other eligible energy sources.
The combined benefit: Greater overall relief
The greatest total relief applies to eligible households that purchase heating oil and also receive the state heating allowance. For example, a household purchasing 1,000 litres of heating oil at the indicative price of €1.55 per litre will pay €1,550 — compared to the €1,950 they would have paid without the discounts. If that same household is entitled to a €650 heating allowance, the net cost to the family budget, after deducting the allowance, amounts to just €900.
This is an illustrative example that assumes the household meets the eligibility criteria and actually receives that specific allowance. The government estimates that for eligible beneficiaries, the effective cost could be approximately €1.35 per litre. However, this figure does not represent a uniform price for all, as the final cost depends on the quantity of fuel purchased and the allowance each household qualifies for. Unlike the fuel discounts, which are applied automatically at the pump, the heating allowance requires completion of the standard application process.
The timeline
Based on the government’s announcements, the key dates for the 2026-27 support measures are as follows:
* 15 October: Heating oil becomes available at the new discounted price, and the new diesel subsidy comes into effect.
* 17 October: The 10-cent subsidy on 95-octane unleaded petrol is activated.
* 31 October: The announced period for the new pump-level subsidies comes to an end.
* By 10 November: The application platform for the heating allowance is expected to open.
* By 23 December: The heating allowance advance payment is due to be disbursed, which will also be increased by 30%.
