As the Middle East crisis and increases in oil and natural gas prices intensify fears of new disruptions in the real economy, the government’s economic team is developing scenarios to extend targeted interventions supporting households. Within this framework, the extension of horizontal fuel subsidies for June is planned, possibly continuing the Fuel Pass subsidy program.
New Fuel Pass: Government examines possibility of further support
Pressure is also being applied for activating electricity bill subsidies (Power Pass) to halt price increases before they fully transfer to consumers. However, the State General Accounting Office expresses reservations about this specific measure.
According to reporting by Marios Christodoulou for parapolitika.gr, with the oil price rally continuing, the “package” of new measures to contain energy costs gains new momentum. The economic team leaves open the possibility of further support, depending on available fiscal space.
€130 million cost for two-month extension
The €200 million “cushion” that enables immediate interventions based on international energy price trends plays a pivotal role in the household support strategy. According to current estimates, extending fuel subsidies for June would cost approximately €40 million, while a two-month Fuel Pass extension for June and July is estimated at €130 million.
The Middle East war’s implications were central to Monday’s (4/5) Eurogroup meeting. According to EU officials’ assessments, the crisis effects will be prolonged, even after hostilities end in the Gulf, affecting global energy supply and demand balance for an extended period.
Strong pressures on the macroeconomic environment have already begun registering, with inflation acceleration, deteriorating growth prospects, and increased uncertainty about the eurozone economy’s trajectory. Simultaneously, recession fears are strengthening – a development that could comprehensively affect European economies, including Greece’s.
