Greece prepares fuel subsidies and profit caps for winter

The Greek government is preparing several interventions to stabilize fuel prices ahead of the winter heating season, which begins on October 15. Prime Minister Kyriakos Mitsotakis has set a target to keep heating oil prices below 1.75 euros per liter, a level seen in April. Given current international market trends and exchange rates, prices without subsidies are estimated to be near 2 euros per liter.

Key measures under consideration include finalizing the level of heating oil subsidies and potentially reintroducing a cap on profit margins for fuel trading companies and gas stations. This cap, originally implemented in March due to Middle East tensions, was lifted in July. Additionally, the government plans to increase the heating allowance for households, maintaining existing income and climate criteria but applying higher coefficients.

In the immediate term, refineries are already providing discounts of 10 cents per liter on unleaded gasoline and 5 cents on diesel. Combined with a 15-cent state subsidy, the total discount on diesel reaches 20 cents per liter. The government is also monitoring the situation bi-weekly to adjust support measures based on global energy market volatility.