Papastavrou: $100 Oil Would Trigger Fuel Measures in Greece

Greece is preparing to intervene in the fuel market if global oil prices rise above $100 a barrel, as the war in the Middle East begins to push up costs at the pump, Energy Minister Stavros Papastavrou said Sunday.

Speaking on Greek broadcaster MEGA on March 8, Papastavrou said Greece would inevitably feel the impact of higher energy prices tied to regional instability.

“Greece will not remain unaffected by developments in the Middle East when it comes to fuel prices,” he said.

The minister set what he described as a clear trigger point for government action: a rise in Brent crude above $100 per barrel.

“With oil above $100 per barrel, we mobilize,” Papastavrou said when asked about the threshold for intervention.

Deputy Energy Minister Nikos Tsafos had issued a similar warning last week.

Government Weighs Possible Measures

Papastavrou said the government has experience responding to energy shocks, pointing to measures taken during the COVID-19 pandemic and the energy crisis triggered by Russia’s invasion of Ukraine.

If needed, he said, the government will take steps to support household incomes. Decisions on specific measures would ultimately be taken by Prime Minister Kyriakos Mitsotakis.

Among the options under discussion, according to information cited in the Greek press, are the reintroduction of a fuel subsidy program known as “Fuel Pass” and a cap on profit margins in fuel trading.

Papastavrou also said Greece could raise the issue at the European Union summit later this month, potentially seeking action at the European level.

Supply Security and Oil Reserves

The minister sought to reassure consumers that the country’s fuel supply remains secure.

Following a meeting with refinery operators last week, Papastavrou said Greece has oil reserves exceeding 90 days.

“The oil reserves at the refineries are above 90 days,” he said.

He added that refineries could curb exports if necessary to protect domestic supply.

“A large share of exports from Greek refineries is not tied to contracts,” Papastavrou said. “If necessary, there is the possibility of limiting them to strengthen supply adequacy.”

Diesel Prices Jump in First Week of Conflict

Fuel prices in Greece have already begun to rise during the first week of the Middle East war, according to the government’s Fuel Price Observatory.

Diesel recorded the sharpest increase. By Friday, March 6, the national average price had reached €1.743 per liter, up €0.178 from €1.565 per liter on Feb. 27, before the conflict began.

The rise has narrowed the gap between diesel and gasoline prices.

Over the same period, the average price of unleaded gasoline rose to €1.82 per liter, from €1.751 per liter, an increase of €0.069 per liter.

Brent crude was trading at $93.04 per barrel at the start of the week, moving closer to the level that Greek officials say would prompt intervention.