The average price of unleaded gasoline and diesel has reached €2.20, Nikolaos Papageorgiou, President of the Attica Fuel Retailers Association, stated on Parapolitika 90.1. He noted that since early August, there has been a prolonged period of high prices and price increases driven by the ongoing wars in the Middle East and Ukraine, with market uncertainty and insecurity playing a major role in shaping fuel costs.
Regarding the Prime Minister’s announcements about heating oil prices staying below €1.75 per liter, Papageorgiou questioned whether, if prices eventually drop to that level, it would simply be considered “cheap fuel” — especially given that just one year ago, heating oil opened the season at €1.10 per liter.
When asked to comment on the reintroduction of a profit margin cap across the entire fuel supply chain, he responded that the industry has suffered considerably under this measure. He explained that the cap serves as an immediate but short-term price brake, and called for a crackdown on fuel smuggling, stronger inspections, and a market framework that genuinely works in favor of consumers.
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Excerpts from Nikolaos Papageorgiou’s interview on Parapolitika 90.1
Among other things, he highlighted:
N. PAPAGEORGIOU: We have reached €2.20 for both gasoline and diesel. Since the beginning of August, there has been a continuous rise in prices, driven by the ongoing negative developments in both wars. Every day we receive updates about significant strikes in both conflicts, and this has pushed prices upward. We started at $73 per barrel at the beginning of August and reached $104.
N. PAPAGEORGIOU: Brent crude oil prices account for about 30% of the final price at the pump. What plays a far greater role in determining the final price is market uncertainty, insecurity, and the negative expectations that markets hold regarding liquid fuels and energy products going forward. We must not forget that refined petroleum products are also traded on financial markets — prices rise and fall according to market sentiment and psychology as well.
On the Prime Minister’s announcements regarding heating oil prices:
N. PAPAGEORGIOU: It was something expected — the truth is that it happened very early. Making such announcements 25 days before the heating season begins is unprecedented.
N. PAPAGEORGIOU: Any government announcement aimed at easing prices on electricity, liquid fuels, natural gas, or any other product used daily by the public is a step in the right direction. We in the market also want to know that state intervention is always available when things start to get out of hand. The question is whether the price will actually be held below €1.75 — and if, after 20 days, prices drop to €1.75, does that mean the fuel is now “cheap” and therefore won’t be subsidized? When just a year ago consumers were buying it at €1.10 per liter?
On the reintroduction of the profit margin cap across the entire fuel supply chain:
N. PAPAGEORGIOU: Our sector has suffered under this measure for several years. During its most recent application, anyone monitoring the Ministry’s price surveys — especially in large cities — could see that we never actually reached the ceiling of the profit margin cap. This means competition was working. However, transportation costs are not the same across all regions of the country, which means we need flexibility.
N. PAPAGEORGIOU: In economic literature, a price cap is a measure designed for immediate, short-term price containment. We had a cap in place for 3.5 years, and that is precisely what led to the well-known phenomena of fuel smuggling and theft at petrol stations. We do not want that in the fuel retail sector. What we want is a crackdown on smuggling, proper inspections, sound and fair legislation, and a market that truly operates in the interest of the consumer.
On the reduction of the Special Consumption Tax (excise duty):
N. PAPAGEORGIOU: The government cannot act on this alone. It clearly recognizes the problem and wants to help citizens and businesses, but it lacks the financial capacity to do so unilaterally. There needs to be relief through an EU-level policy. The European Commission had an obligation to rise to the occasion and provide the necessary fiscal room for member states to support their citizens. I was pleased to hear from both the Prime Minister and Mr. Pierrakakis that they intend to raise this issue with the European Commission.
