Greece increases support for vehicle diesel, relief could reach 20 cents per liter

The Greek government is intervening once again in response to rising fuel prices, with the aim of also curbing increases in food prices. Prime Minister Kyriakos Mitsotakis announced a new package of measures on Wednesday afternoon, focused mainly on vehicle diesel and heating oil.

On Tuesday, 95-octane unleaded gasoline in Greece cost an average of around €2.21 per liter, while diesel cost around €2.23. On some islands, prices reached as high as €2.45 per liter.

According to Mitsotakis, for the period from October 1 to 15, the state subsidy for vehicle diesel will increase from 10 to 15 cents per liter. If the reduction expected from refineries is added, the relief could reach 20 cents per liter. No direct state subsidy has so far been provided for gasoline.

The government will review the measures every 15 days, citing the major fluctuations that, according to officials, continue to affect international oil prices.

Another issue is heating oil, which will go on sale on October 15. The government’s aim is for its initial price to be below €1.75 per liter; last year, the average price was around €1.15 per liter. Final decisions on the level of support and subsidies for citizens in need are expected to be made public by October 14.

The package also includes small and medium-sized businesses. The scheme for repaying their outstanding debts to the state will be expanded from 72 to up to 120 installments, with a minimum payment of €30 per installment.

New rules will also be introduced for companies that manage non-performing loans. A servicer that violates a valid agreement with a debtor may be fined up to €500,000. Advance payments required from citizens will also be limited.

For Greek households, the most immediate concern remains the cost of fuel at the pump: both gasoline and diesel cost more than €2 per liter. The government warns that the measures may change again, depending on developments in international markets.