Switzerland close to tapping emergency heating oil reserves ahead of winter

The heating oil supply in Switzerland is heading towards critical levels as winter fast approaches, with low water levels in the Rhine and conflict in the Middle East pushing the federal government closer to releasing mandatory reserves. Tenants and homeowners could soon feel the cost.

Heating oil supply very strained as winter arrives

Although currently considered “secure”, the supply of heating oil, which heats around 33 percent of residential buildings in Switzerland, is “very strained”, according to the latest Federal Office for National Economic Supply (BWL) update.

If temperatures were to suddenly drop and trigger a surge in demand, the federal government could be forced to release mandatory heating oil reserves "for the first time" in recent years, according to 20 Minuten.

Transport bottlenecks and surging energy prices

Switzerland’s heating oil supply is being pushed to its limits for several reasons. Water levels in the river Rhine, which Switzerland relies on for cargo transport, are extremely low after a dry, hot spring and summer. Andreas Flütsch, head of fuel supplier Migrol, commented that he has “never experienced such a prolonged restriction on Rhine shipping in his 30 years in the industry.”

With river transport to Switzerland restricted, attempts to utilise rail freight to get oil to the country have also been “fraught with problems”, continues 20 Minuten, due to “a lack of rail capacity [and…] construction sites and operational disruptions.”

Furthermore, many residents delayed ordering heating oil after the US/Israel war on Iran caused prices to explode earlier this year, in hope that rates may drop later on. Yet no price relief is in sight. On October 14, heating oil reached its highest price in three years at 175,20 Swiss francs for 100 litres. Even so, households who need to fill their heating tanks will sooner or later need to purchase supplies.

Which homes are affected & what does it mean for expats?

Heating oil is predominantly used in older apartments or houses built before the 2000s. Modern or recently renovated homes will likely use an electric heating pump system (Wärmepumpe).

While most expats in Switzerland likely rent and rely on a property management company to handle heating and fuel, tenants could still feel the knock-on effects if supplies are restricted and landlords are forced to pay higher rates and pass the costs down via utility bills.

Anyone who owns a home that uses a private oil tank may want to check levels and prepare ahead for the winter.