Energy prices are rising sharply in Belgium as geopolitical tensions and the return of seasonal demand put renewed pressure on consumers, raising the question of whether it's time to switch contracts, according to Le Soir.
The latest increases are being felt most visibly at petrol stations. The price of 95-octane petrol (E10) is set to reach €2.058 per litre, an increase of 9.2 cents, bringing it to its highest level since July 2022, Le Soir reported. Diesel prices are also climbing, rising by 14.5 cents to €2.386 per litre. Both petrol and diesel have increased by around 30% since February.
Vincent Orts, spokesperson for Brafco, the federation representing Belgium's fuel and heating-oil traders, told Le Soir that prices had briefly stabilised in recent weeks as markets anticipated a possible easing of tensions in the Middle East.
But the latest developments have reversed that trend. "There was a slight delay in Belgium because of the effects of the programme agreement, which smooths out prices, but now we are seeing the impact," Orts said.
The pressure is not limited to road fuels. Heating oil has risen by almost 45% since the beginning of July, increasing from €1.0005 per litre on 1 July to €1.4473 per litre at the start of September.
According to Jean-Benoît Schrans, communications director of Energia, the former Belgian petroleum federation, heating-oil prices are particularly difficult to predict because they can react quickly to movements on international markets. Demand also tends to increase as winter approaches, adding another source of pressure.
Gas prices also climbing
Natural gas prices have also risen significantly in recent months. On the Dutch futures market, which serves as a benchmark for European gas prices, the price of a megawatt-hour reached €72.2 on 1 September. That compares with less than €43 at the beginning of July and just over €30 before the crisis in the Strait of Hormuz.
The increase is already being reflected in the prices offered by energy suppliers. Maxime Sonkes, CEO of energy comparison service Wikipower, said the September increases had largely been expected because suppliers typically lock in gas volumes towards the end of the previous month.
September is also a key month for energy prices because consumption begins to rise as temperatures fall. However, gas prices remain below the peaks seen four years ago following Russia's invasion of Ukraine. Marc Van Den Bosch, head of Febeg, which represents Belgium's electricity and gas companies, said lower European consumption and more diversified sources of supply were helping to limit the impact.
Should households switch energy contracts?
For consumers, the sharp increase raises another question: whether to switch from a variable to a fixed-price gas contract. Sonkes said consumers with variable contracts generally pay less over time, but are more exposed to sudden price increases. Fixed contracts, meanwhile, offer greater protection against price spikes but tend to be more expensive.
Switching from a variable to a fixed contract is therefore not recommended at present, while prices remain elevated.
Julie Frère, spokesperson for consumer organisation Testachats, also advises consumers to wait before locking in a fixed price. "Current rates are high again," she said, warning that households choosing a fixed contract now could lock in their winter consumption at a relatively high level.
A fixed contract would only become advantageous if energy prices continued to rise substantially over the coming weeks and remained high throughout the winter, according to Frère.
For households on variable contracts, she expects the immediate impact of the gas-price increase to remain limited because consumption is still relatively low in September. But for households facing higher bills this winter, such structural changes offer little immediate relief.
