The impact on pump prices following the termination of the 15-cent-per-liter diesel subsidy has proven remarkably limited. Early available data shows that diesel costs remain significantly lower compared to levels recorded 2.5 weeks ago, when a ceasefire agreement was reached between the US and Iran.
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Minimal pump price increase on July 1st
According to official data from the Ministry of Development’s fuel price observatory, on July 1st — the first day under the new conditions following the expiry of the three-month state subsidy — the national average retail price of diesel settled at €1.648 per liter. This translates to a minimal increase of just 4 cents compared to the previous day, June 30th.
This development confirms that 74% of the potential price increase that the expiry of the 15-cent subsidy could have triggered was fully absorbed by the market itself before being passed on to consumers.
Thanks to this strong market absorption, upward pressure at the pump was kept to an absolute minimum, allowing diesel prices to maintain the broader downward trend recorded in recent weeks.
Global oil prices fall, but Greece sees slight increases as subsidy expires
Specifically, on June 14th — the day the Washington-Tehran agreement was announced — the average retail price of diesel in Greece stood at €1.739 per liter. By June 30th, the last day the subsidy was in effect, the price had dropped by 14 cents to €1.608 per liter, just 4 cents away from the €1.568 recorded on February 28th, when hostilities in the Gulf began.
Government officials involved in planning the response to the war’s impact on the fuel market expressed satisfaction that the subsidy’s expiry had only a minimal effect on retail prices.
The same sources emphasized that pump prices should continue to decline in the coming weeks, in line with the gradual normalization of supply in the international oil market.
It is worth noting that from the early stages of the conflict, the government placed particular emphasis on containing diesel prices, as it is a fuel used extensively throughout the supply chain and can therefore influence the pricing of thousands of goods and services.
According to the European Commission’s weekly petroleum bulletins, Greece managed to contain diesel price increases better than the EU average.
