Fuel prices in Greece exceed 2 euros per liter amid subsidy uncertainty

Fuel prices in Greece have surpassed the 2 euro per liter threshold for both unleaded gasoline and diesel, placing significant pressure on household budgets and the transport sector. While current prices are partially mitigated by a 10 cent per liter government subsidy on diesel and refinery discounts, these measures are set to expire on August 31.

The Greek government is considering an extension of the diesel subsidy into September to support the supply chain and mitigate rising costs. However, gasoline remains without direct state support, and if refinery discounts are not extended, prices could rise toward 2.12 euros per liter.

On the international stage, crude oil prices, including Brent and WTI, have seen a downward trend due to increased hopes for a diplomatic resolution in the Middle East. Specifically, ongoing negotiations between Iran and Oman regarding the management of the Strait of Hormuz have raised expectations for improved energy flow stability. Despite this, market volatility remains high as investors weigh the potential for a full restoration of maritime traffic against ongoing geopolitical tensions.