A new environmental levy is set to increase diesel prices in Greece by €0.12 per litre starting January 1, 2027, as part of the European Union’s Emissions Trading System II (ETS II), which targets the reduction of carbon emissions.

The development was announced by Giannis Aligizakis, President and CEO of ELIN, as well as President of the Hellenic Petroleum Marketing Companies Association, during the company’s annual general assembly.

Additional Burden for Greek Consumers

Under the ETS II, all fossil fuels used for road transport, heating, and in small- to medium-sized industries will face an estimated cost of €45 per cubic metre due to the price of emissions rights. According to Aligizakis, while the EU’s objective to reduce fossil fuel consumption is clear, the measure poses a disproportionate burden on Greek consumers, who already face some of the highest fuel taxes and duties in the EU.

The anticipated increase of €120 per cubic metre in diesel cost translates to an additional €0.12 per litre at the pump. Aligizakis questioned whether Greek consumers—already facing significant financial pressure—could absorb the estimated €800 million in added costs annually. He also raised concerns about the impact on Greek exports and the wider economy.

Industry Faces Hefty Fines and Operating Challenges

Fuel companies are also expected to bear the weight of new penalties. Based on Greece’s National Energy and Climate Plan, the sector will likely face fines amounting to €50 million annually for failing to reduce fossil fuel consumption in a market already experiencing declining demand.

Aligizakis emphasised that despite the sector’s efforts, structural constraints make it nearly impossible to achieve these targets without incurring penalties. He argued that companies cannot be expected to reduce consumption on their own when doing so undermines their economic viability.

Criticism of State Policies

Aligizakis criticised Greek government policies for being unfair toward the fuel trade sector. He said that authorities often treat fuel marketing companies merely as intermediaries or profiteers, while ignoring the essential role they play in the economy.

He pointed to recent legislative improvements aimed at curbing illegal practices in the fuel market, stating that it took over two decades for a meaningful law to be enacted. However, he noted that some ministries remain unwilling to collaborate to improve the law’s remaining shortcomings.

A Critical Sector for the National Economy

Highlighting the importance of the fuel industry, Aligizakis described it as a backbone of the Greek economy. Any disruption in the sector, he warned, would have immediate consequences—grounding aircraft, halting industrial production, and affecting maritime and road transport.

He also stressed the sector’s significant investment in infrastructure, such as storage facilities and transport fleets, to ensure the safe and efficient distribution of hazardous and polluting products.

Finally, Aligizakis pointed out that the sector employs over 100,000 people—directly or indirectly—and contributes €5 to €6 billion annually in duties to the Greek state. These duties are prepaid, making the fuel industry the most reliable source of tax revenue in the country.

source: OT.gr