While the price of Brent crude oil has surpassed the $100 mark per barrel, with forecasts painting a bleaker picture in the immediate future, the Greek government is working on a series of measures, including a fuel cap system, to curtail the impact on consumers.
According to OT sources, the first step is the introduction of a cap on profit margin for trading and retail fuel. The same sources suggest that the Ministries of Development and Energy have already forwarded a list of proposals for approval to the PM’s office.
The price cap on profit margins, the exact amount of which will be decided at a prior stage, is reportedly expected to take effect immediately.
This means petroleum trading companies and petrol stations will be compelled to keep profit margins below the cap.
Greece’s economic team is seeking to cushion the impact of rising fuel prices as the latest data from the Liquid Fuel Price Observatory shows unleaded gasoline has jumped to €1.832 per liter, while diesel has climbed to €1.772 per liter. Before the war, unleaded stood at €1.751 and diesel at €1.565 per liter — representing increases of €0.081 and €0.207 per liter, respectively.
Development Minister Takis Theodorikakis has held a series of meetings with petroleum industry representatives since last week, seeking firsthand insight into market conditions ahead of any policy decisions.
Government sources indicated that the “fuel pass” subsidy program — which would directly offset pump prices for gasoline and diesel — will not be activated immediately. The measure remains under consideration as a secondary option, to be triggered only if prices breach the €2.00-per-liter threshold.
The fuel industry has signaled strong resistance to the imposition of a fuel cap on profit margin, with petroleum company executives outlining several objections:
A cap on gross trading margins would have a limited effect, as those margins represent only roughly 10% of the final pump price.
Industry officials also called for any such cap to be strictly temporary, warning that a prolonged measure — as occurred during the pandemic, when a cap imposed in that period remained in place through the subsequent energy crisis — would distort the market and drive non-compliance. Prior experience showed that sustained caps pushed margins toward the legal ceiling, further skewing competition.
The industry instead urged the government to consider reducing fuel taxes, which currently account for approximately 60% of the final price, arguing that tax cuts would deliver an immediate and substantial reduction at the pump while also easing operating costs for businesses that rely heavily on petroleum.
Source: tovima.gr
