The extension of the diesel subsidy — at least for the first two weeks of October — is expected to be announced today by the prime minister at the Cabinet meeting, as part of a broader set of interventions aimed at curbing fuel prices and easing the financial burden on households, professionals, and businesses.
The picture at the pump has changed significantly in recent weeks. Diesel, which traditionally offered a cheaper alternative to gasoline, is now selling at a higher price. The national average has reached €2.21 per liter, straining not only drivers’ wallets but the entire market — from transportation and logistics to the final prices of consumer goods.
The economic team is monitoring market conditions while simultaneously weighing the fiscal cost. Available resources are not unlimited, and the final intervention will be shaped by both the trajectory of international prices and the available fiscal space. The government has already signaled that diesel support will continue into October, with measures to be reviewed on a biweekly basis due to high volatility in global markets.
Fuel subsidies: 20 cents per liter for diesel on the table
According to information available late last night, the subsidy is being considered for an increase to at least 20 cents per liter, combined with a contribution from refineries. Currently, the state subsidy on diesel stands at 10 cents per liter, with an additional 5-cent discount provided by refineries.
The economic team is also examining a more ambitious scenario. Should additional fiscal space become available, total support could rise to as much as 25 to 30 cents per liter — a level that would make a clear impact on the final pump price and deliver a meaningful result for consumers. This remains, however, a scenario contingent on final fiscal data and has not yet been locked in as a firm decision.
The government’s dual objective is to limit the direct cost burden on diesel users while also preventing the high fuel prices from feeding through into transportation and goods prices more broadly.
Heating oil also in the spotlight
The diesel intervention represents the first pillar of the energy package. The next major front is heating oil, which goes on sale from October 15. The government has already signaled a two-pronged approach, combining a pump subsidy with an across-the-board increase in the heating allowance.
The target is for the starting price of heating oil to come in below €1.75 per liter, with relevant announcements expected on October 14. In the meantime, the market remains tied to international developments. Brent crude is holding firmly above $100 per barrel — reaching as high as $107 in recent days — keeping petroleum product costs elevated and leaving little room for prices at the pump to ease.
