Greece proposes heating oil subsidy to mitigate rising energy costs

The Greek government has submitted an amendment to Parliament to introduce a subsidy for heating oil, aimed at mitigating the impact of rising energy costs on households and businesses. The measure, proposed by the Ministries of National Economy and Finance, Environment and Energy, and Development, is intended to cover fuel distributed to the domestic market between October 15 and October 31, 2026.

Under the proposed scheme, refineries and fuel trading companies will act as intermediaries to ensure the full benefit of the subsidy is passed directly to end consumers without retaining any financial profit. The exact amount of the subsidy will be determined by a joint ministerial decision before the October 15 start date. The amendment also allows for potential adjustments to the subsidy amount or the implementation period.

In addition to heating oil, the government is also managing subsidies for transport fuel and addressing agricultural fuel through the return of the Special Consumption Tax (SCT) via a new digital system. The heating oil initiative is part of a broader effort to manage energy volatility and provide relief to vulnerable populations ahead of the winter season.