Greece faces high fuel costs and economic shifts

Fuel prices in Greece remain high due to significant taxation and international market pressures. While global crude oil prices are comparable to 2008 levels, Greek consumers face higher costs driven by an increase in Value Added Tax (VAT) to 24% and substantial hikes in the Special Consumption Tax (SCT). For example, the SCT on 95 octane gasoline has doubled since 2008, and heating oil taxes have risen by over 1,200% to combat smuggling.

There is ongoing discussion regarding potential relief. A hypothetical scenario modeled after a German tax reduction suggests that reducing the SCT by 0.14 euros per liter could bring the average price of 95 octane gasoline close to the 2-euro threshold. Additionally, price discrepancies at local gas stations in Attica are attributed to varying supply times and fuel costs.

In broader economic news, Greece is seeing improved creditworthiness. Scope Ratings upgraded Greece to BBB+, noting a rapid decline in the debt-to-GDP ratio. Projections suggest Greece may end 2026 with a lower debt-to-GDP ratio than Italy. Furthermore, Greece has joined a small group of EU nations that have completed the legislative integration of the EU wage transparency directive, with new rules regarding salary disclosures set to apply in late 2026.