Will oil prices go up in 2020?


Due to the introduction of a CO2 tax (increase in heating oil price by around 8 cents / liter) and the increase in VAT to 19% (increase by 3%), heating oil prices will rise by approx. 20% up, so order your heating oil requirements from your heating oil dealer as soon as possible

The federal government's climate protection program provides for a 52% reduction in greenhouse gas emissions by 2030 compared to 1990 levels. Implementation of the Building Energy Act and especially the Fuel Trade Act will result in a CO2 tax on the specific CO2 emissions of the individual energy sources from 01/01/2021 introduced - for example on heating oil, natural gas, liquefied petroleum gas, diesel, petrol etc.For heating oil, the following concrete CO2 tax development (incl. 19% VAT) results for the next few years Heating oil - as of 01/01/2019).


With the introduction of the new CO2 tax, the net heating oil price will automatically increase by 6.7 cents / liter (gross by around 8 cents / liter) from 01/01/2021. An example should show you the price development for heating oil at the turn of the year:


Price components heating oil, low in sulfur

December 31 2020 (Cent / L)

01/01/2021 (Cent / L)

Change (Cent / L)

Product price




Energy tax




CO2 tax




contribution margin




Net price




VAT rate (2020 = 16% / 2021 = 19%)




Gross price





According to our price example - with a gross heating oil price of 45 cents / liter of heating oil - the following heating oil price structure results up to December 31, 2020 (see graphic or table):



The following two factors will lead to an increase in heating oil prices from 01/01/2021:

1. Introduction of a CO2 tax with a net of 6.7 cents / liter (gross approx. 8 cents / liter)

2. Increase in VAT from 16% back to 19% (plus 3%)



With the introduction or increase of these two cost components, the heating oil price in our calculation example increases from 45.00 cents / liter to 54.13 cents / liter (see table and price graph) - this corresponds to an absolute increase of 9.13 cents / liter or by around 20%.

Based on a purchase quantity of 3,000 liters, you would have to pay around 274 euros more from January 1, 2021 !!!!

If you want to avoid this heating oil price increase of around 20%, then order the amount of heating oil from your heating oil dealer as soon as possible so that the desired amount of heating oil can be delivered to you before the end of this year, because according to the law, the CO2 tax and the increased VAT must be charged.


Source: HuD GmbH Halle

Back to overview