Two interventions are expected in the fuel market before October 15, when heating oil distribution begins for the season. These interventions include:
- Finalizing the subsidy amount for heating oil
- The potential reinstatement of a profit margin cap on fuel trading companies and petrol station operators
Fuel market: Two interventions expected in the coming days
The goal — as announced by Prime Minister Kyriakos Mitsotakis — is to bring the price of heating oil below €1.75 per litre, which was the price at which the fuel closed in April at the end of the previous heating season.
Based on current international price levels and the dollar/euro exchange rate, the unsubsidized price sits at around €2 per litre. As a result, the subsidy amount will depend on how international markets fluctuate over the coming days leading up to the start of the heating season.
Refineries are also expected to contribute to the subsidy effort. They are already applying discounts of 10 cents per litre on standard unleaded petrol and 5 cents per litre on diesel (bringing the total discount on diesel, including the government’s 15-cent subsidy, to 20 cents per litre). Depending on how international prices develop in the near term, one scenario under consideration is redirecting the subsidy from unleaded petrol to heating oil.
Regarding profit margins, it is worth noting that on March 11, following the outbreak of the Gulf crisis, a cap was imposed on the profit margins of fuel trading companies — set at 5 cents per litre for diesel and standard unleaded petrol, while the corresponding margin for petrol stations was capped at 12 cents per litre. This cap was lifted on July 1, and its reinstatement is now being considered.
Data from the fuel price monitoring authority shows that removing the cap led to a marginal increase of around 2 cents per litre. As the president of the Association of Petroleum Trading Companies, Giannis Aligizakis, stressed to the Athens-Macedonian News Agency (ANA-MPA), the profit margin cap had already been in place from 2021 to 2025 — a period during which business operating costs and wages rose significantly, putting corresponding pressure on margins.
Beyond government and refinery subsidies, the finalization of an increase to the heating allowance is also expected. This will be paid out using the same income and climate-related criteria as before, but with higher coefficients.
Electricity
Finally, regarding electricity, the season is getting underway with higher variable “green” tariffs, but consumers also have the option to switch to fixed-rate “blue” plans at lower prices for the entire next twelve-month period.
For October, the announced green variable tariffs range from 14.76 to 33.9 cents per kilowatt-hour, while fixed blue tariffs start from 11.5 cents and scale up to 36 cents per kilowatt-hour.
Source: Athens-Macedonian News Agency (ANA-MPA)
