Greece to subsidize fuel purchases “in the face of international economic instability”

Prices will fall. Conservative Greek Prime Minister Kyriakos Mitsotakis announced this Monday, March 23, four “targeted” subsidies totaling 300 million euros on fuels and fertilizers to deal with the consequences of the war in the Middle East.

“Faced with international economic instability”, the Greek government will introduce for April and May a subsidy system on automobile and maritime fuels, on diesel and on fertilizers, the conservative leader said during a speech on television. “I am announcing a set of four targeted measures (…) The support they imply is aimed at almost the entire population,” argued Kyriakos Mitsotakis.

Greece will thus set up “a digital fuel card” which can be used at service stations, public transport or taxis. “The average amount (of this support) is estimated at 36 cents per liter” of gasoline, said the Prime Minister.

“To relieve farmers in the face of brutal increases in fertilizer prices”, Athens will also subsidize their fertilizer bills by 15%, he also announced.

A diesel subsidy

The other two targeted measures concern maritime passenger transport, an important sector in Greece due to its geography, and automotive diesel. “Our goal is to keep ferry ticket prices close to last year’s levels,” argued the Prime Minister, as the start of the tourist season approaches.

Regarding diesel, “the State will subsidize it, in the distribution network, to the tune of 16 cents per liter”, according to him. The Prime Minister also assured “to keep reserves in case the global economic situation deteriorates significantly (…) since no one knows how long this war will last”.

He had already announced on March 11 the establishment of a cap on profit margins on fuel prices in order to avoid speculation. The Minister of the Economy, Kyriakos Pierrakakis, is due to detail these measures later during a press conference.

Spain, for its part, announced on Friday a series of 80 measures totaling 5 billion euros to combat the effects of the war in the Middle East.

Oil prices continued to rise on Monday. They have been soaring since the start of the conflict, raising fears of renewed inflation and a slowdown in global economic activity.