Soaring fuel prices mean expensive winter

15 October 2004

BRUSSELS – Fuel prices in Belgium are soaring due to the price of crude oil, meaning hefty heating bills for many this winter, it was reported on Friday.

A fund will be put in place to assist the poor pay for heating oil this winter and petrol companies have also pledged financial assistance.

Plans for the social fund to temper the cost of fuel were laid out at meeting of the Belgian cabinet on Friday.

The fund will be taken from tax on all petrol products used for heating.

At the same time, the price of heating oil will be kept low for consumers.

The fund will be applied to heating oil and bulk supplies of propane gas.

Payments will be allocated to people who have a gross income lower than EUR 12,700 annually, which will affect 200,000 households.

Financial assistance will increase as the price of fuel goes up.

This means that for a price of between 0.45 and 0.50 euro cents, the fund will provide 0.10 cents, with a ceiling of EUR 100 annually.

Between 0.50 and 0.55 euro, it will go up to 0.115 cents per litre, or EUR 115 each year.

After 0.55 euro cents per litre, the assistance will reach 0.13 cents per litre or a maximum EUR 130 in one year.

The funds will apply during the period from 1 September to 31 March.

Subject: Belgian news