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Gasoline, diesel, heating oil, gas and electricity: where are the prices compared to last February?

  • Post category:Economy News
  • Reading time:3 mins read

“We are very far from having a return to normal, it’s even the opposite”, reacts Quentin Gonay, Technical Director of Wikipower, specializing in group purchases and price comparisons, when he discusses the evolution of gas and electricity prices for consumers.

“On the wholesale markets, compared to the pre-covid period, we are at X10 or X11, whether for electricity or for gas”, explains Quentin Gonay. For consumers, once the other components of the bill are integrated, such as taxes, surcharges and distribution and transportation costs, “for the consumer, this translates into X2, X3 or X4 compared to his monthly bill”specifies Quentin Gonay.

Gas and electricity prices had already risen when the Covid epidemic emerged. The war in Ukraine accentuated the phenomenon. “Compared to February 24, we have about X3 on the wholesale markets compared to the period just before the war in Ukraine”notes Quentin Gonay.

The threat to Europe’s gas supply due to dependence on Russian gas is influencing prices upwards.

Currently, for a Walloon household, gas costs “13 cents per kWh, excluding taxes, surcharges and distribution costs”, explains Quentin Gonay. “In a classic, normal period, we are around 2 cents per kWh”he adds.

The price of gas itself influences the price of electricity. Indeed, the price of electricity depends on the cost of the last unit of electricity production which starts up to guarantee the supply of electricity to the network. It is almost always a gas plant, easy to start and stop, which is used to balance the electricity network. Since the gas used is expensive, so is the electricity. “Unfortunately, as long as there are problems with gas, there will be problems with electricity”warns Quentin Gonay, of Wikipower.

Household electricity bills, which are already heavy, are likely to increase further. In Wallonia, “in 2020, a household paid between 800 and 1000 euros in electricity for average consumption. In June 2022, we were already at 1500 euros”, summarizes Quentin Gonay. It’s an average. Some customers who have variable contracts are probably already above this amount. Customers still in fixed contracts are still escaping this upward movement, but they will be caught up as soon as their contract has expired and replaced by a variable contract, since energy suppliers no longer offer fixed contracts.

Compared to the end of June, the market has gained another 50%. And it is to be expected that prices will increase further in the coming months. It is therefore better to compare the offers of the suppliers. Between the least advantageous contract and the most advantageous, there may be a difference of a few hundred euros. It all depends on where you are between these extremes.