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Heating Costs Rise in Germany as Pellet and Heating Oil Prices Tick Up

Analysts expect EU emissions trading from 2027 to drive fossil-fuel heating bills higher.

Overview

  • Market data on October 23 show pellet prices at about €351 per tonne, up roughly €5 in a week, while heating oil prices edged higher but remain well below the 365‑day average.
  • The latest co2online Heizspiegel reports 2025 year‑on‑year increases of about 20% for pellets, 15% for gas, 5% for heat pumps and 3% for oil.
  • Using a standardized 70 m² apartment, estimated annual running costs are roughly €1,180 for gas, €1,055 for oil, €740 for pellets and €715 for a heat pump.
  • Experts warn that gas and oil systems could become a cost trap as EU ETS‑based CO2 pricing takes effect in 2027, likely lifting fossil heating costs.
  • Regions with high oil and gas shares such as Bavaria are more exposed to future price pressures, according to sector data and analysts.