Greece Considers Diesel Subsidy Extension as Oil Prices Surge
The Greek government is considering extending the diesel subsidy beyond August 31, as international oil prices continue to climb. The national average price of diesel has surpassed €2 a liter, with no sign of relief in sight due to ongoing global conflicts. According to the Fuel Price Observatory, the average diesel price stood at €2.012 per liter on Thursday, an increase of 1.6 cents from the previous day.
The subsidy, which provides a 10-cent-per-liter discount on diesel, is currently set to expire on August 31. However, officials are weighing the option of extending it to ease consumer frustration starting September 1, when most people return to their daily routines after summer vacation. The government's economic team has also expressed concern about diesel prices, as they have a direct impact on inflation.
With Brent crude topping $94 a barrel, a three-week high, the effects of the price increase are being felt at the pump in Greece. Refinery discounts for both diesel and unleaded are set to expire at the end of August, adding further pressure to fuel prices. The funding framework for these measures includes a roughly €200-230 million pool earmarked for energy interventions.