Greece braces for high energy prices amid secure supply

Over the past eight months of conflict in the Middle East, energy prices have surged significantly. Oil prices have climbed 43%, refined-product prices 83%, gasoline prices at Greek pumps 27%, and diesel prices 41%. Despite these rising costs, Greece appears to be in a stronger position to manage energy supply risks compared to other European nations.

The country’s resilience stems from strategic investments by its refining and natural gas sectors. Greece’s four refineries, operated by Helleniq Energy and Motor Oil, have maintained and upgraded their refining capacities. This contrasts with the broader European trend of refinery closures, which has left the continent vulnerable to shortages and higher prices.

To mitigate supply risks, the G7 countries have agreed to release up to 100 million barrels from strategic reserves through the International Energy Agency. This four-month operation aims to stabilize diesel supplies, with significant volumes released within the first 20 days. Meanwhile, major Greek importers Metlen and DEPA have secured long-term contracts for Russian gas, ensuring supply stability for natural gas and electricity.

However, Greek energy executives warn that while supply security is strong, prices remain a major concern. Kostas Karahalios, General Director of Supply and Petroleum Sales at Helleniq Energy, noted that Europe’s main issue is cost rather than availability. Longer shipping routes have increased freight costs, potentially leading to unusually high prices for consumers this winter. Panagiotis Kanellopoulos of Metlen echoed these concerns, stating that gas and electricity prices could skyrocket if the winter is severe.