The economic staff is in the final stretch for extending support measures in the fuel market, with relevant announcements expected within the week. Developments in the Middle East and ongoing instability in international oil markets have caused a new wave of concern in the government, as rising fuel prices are beginning to transfer once again into the daily lives of households and businesses, significantly increasing transportation costs for individuals and professionals.
Fuel subsidies: Support measures to be extended, announcements in coming days
In this context, the Ministry of National Economy and Finance, utilizing the fiscal “cushion” of approximately 200 million euros that has been maintained as a reserve to address the impacts of the energy crisis, is considering extending the 20-cent subsidy on diesel fuel, as well as a new round of Fuel Pass.
According to current data, the cost of another monthly extension of the diesel fuel subsidy is estimated at approximately 40 million euros, while the reintroduction of the Fuel Pass for a two-month period is estimated to reach up to 130 million euros. This means the total package could approach or even exhaust the available reserve of 200 million euros, if full implementation of both measures is chosen.
Economic staff members leave open the possibility that interventions may have a more limited character, especially regarding the Fuel Pass, in order to maintain fiscal reserves ahead of the Thessaloniki International Fair and a difficult autumn for the economy. However, according to competent sources, approximately 17 million euros remain unused from the first round of Fuel Pass, as nearly 390,000 beneficiaries did not submit applications, despite the fact that since Easter, the price of unleaded gasoline at pumps has remained steadily above 2 euros per liter.
At the same time, approximately 1.6 million beneficiaries chose to receive the subsidy in their bank account, an option that corresponded to a lower amount compared to the subsidy through the digital fuel card. This shows that for many beneficiaries, the support was not used only for fuel purchases, but also to cover other daily needs, following the explosion of price increases in food and housing, which now constitute key factors in the cost of living crisis.
Final decisions are expected to be made within the coming days, with reports indicating that announcements will be made before the end of the week, so that new measures can be implemented from June.
