Applications for the heating allowance 2025 are expected to open soon on the AADE platform, MyHeating, while heating oil prices are forecast to remain at similar levels to last year. The start of fuel distribution from October 15 brings new developments for consumers and significant changes in taxation for island regions.
Estimates for the new heating season indicate that heating oil costs will range between €1.11 and €1.12 per liter. This forecast is based on current economic data, however the final price formation depends on critical factors such as global energy market trends and the euro-dollar exchange rate, which today stands at €1 to $1.17.
Heating allowance: MyHeating platform and application process
The electronic platform of the Independent Authority for Public Revenue for the heating allowance 2025 will be operational in the coming days. The MyHeating system will allow eligible recipients to submit their applications for financial assistance, following the established procedures of previous years.
VAT reduction in Aegean islands from 2026
A significant development is the extension of the reduced 17% VAT to an additional 19 remote Aegean islands from January 1, 2026. This reduction, announced at the Thessaloniki International Fair, will result in a decrease of approximately 7 cents per liter in heating oil prices.
The preferential rate is already applied on five islands: Leros, Lesvos, Kos, Samos, and Chios. From 2026, the regulation will extend to the following islands:
Lipsi, Tinos, Agathonisi, Halki, Kastellorizo, Kalymnos, Nisyros, Patmos, Symi, Karpathos, Kasos, Astypalea, Lemnos, Agios Efstratios, Ikaria, Fourni, Oinousses, Psara, and Samothrace, including adjacent smaller islands
POPEK proposals for system improvement
The Panhellenic Federation of Fuel Retailers reintroduces the proposal for direct heating allowance 2025 distribution at the pump. According to the organization, this method would ensure that actual consumers benefit from the measure, while simultaneously reducing illegal fuel trade.
The benefits of the proposal include reducing initial purchase costs for households and immediate positive impact on inflation. Additionally, implementation would reduce financial costs for traders and banking fees, estimated at over €1.5 million.
Impact on business competitiveness
POPEK emphasizes that businesses such as hotels using heating oil face unfair burden compared to those operating with natural gas or LPG. This difference increases operational costs and negatively affects industry competitiveness.
Simultaneously, the organization calls for eliminating bureaucratic procedures and the “HEPHAESTUS” system, proposing proportional distribution of the budgeted amount based on 2024-2025 consumption. It’s noted that last year, €58.8 million less was distributed despite consumption increasing by 167.5 million liters.
If the proposal for direct allowance distribution is implemented, heating oil prices in urban areas with high consumption would be set below or near €1 per liter.
