Greece considers fuel subsidy extension amid rising energy costs

The Greek government is evaluating an extension of fuel subsidies into the first half of November to mitigate the impact of rising international energy prices. Current measures, which expire on October 31, provide a 40-cent per liter reduction for heating oil, a 20-cent reduction for diesel, and a 10-cent reduction for unleaded gasoline. These subsidies are funded through a combination of state resources and contributions from refineries.

Decision-makers are monitoring global market trends, including Brent crude approaching $120 per barrel and European natural gas exceeding €93 per megawatt-hour. To fund potential expansions, Athens is seeking greater flexibility from Brussels to utilize €300–€400 million from the EU energy escape clause intended for energy infrastructure.

Additionally, the government has announced a 30% increase in the heating allowance for the 2026-2027 season, with maximum payments rising to €1,560. This measure aims to support approximately 1.2 million households, with application platforms expected to open by November 10. Officials emphasize that while fiscal reserves exist, support must remain within budgetary limits and comply with European regulations.