Athens, Greece. Greek Prime Minister Kyriakos Mitsotakis said on Friday that gasoline and diesel costs for consumers would fall during the summer after the government reached a deal with oil refineries to limit the impact of the Iran war on fuel prices.
Speaking in parliament in response to a question from an opposition lawmaker about the cost of living, Mitsotakis said the temporary relief would remain in place until the end of August.
Refinery agreement on fuel prices
Mitsotakis said Greece’s two major oil refineries had agreed to price reductions until the end of next month.
“Fuel prices will drop by 10 cents per litre and diesel fuel will drop by 5 cents per litre,” he said, adding that the reductions would be temporary until the end of August.
Pressure on household budgets
Greece has recovered from the 2009-2018 debt crisis that brought wage cuts under bailout austerity measures. Since taking office in 2019, Mitsotakis’ government has reduced taxes and increased salaries.
However, rising consumer prices, exacerbated by the conflict in the Middle East, have put pressure on household budgets in Greece, where purchasing power remains below the European average.
Summer demand and earlier support measures
Fuel consumption typically rises during the summer months, when many Greeks travel to the countryside and the islands for holidays.
Earlier this year, Mitsotakis’ ruling New Democracy party, which holds a majority in the 300-seat parliament, announced subsidies for fuel and fertilisers and discounts on ferry tickets.
Further measures and election timeline
The government has also promised cheaper food and other essential goods from September following consultations with domestic suppliers and supermarkets.
A parliamentary election is due next year.