Μake us preferred on Google The Greek government is holding back the details of its new fuel-support package as the Finance Ministry waits for greater clarity on oil prices and geopolitical developments, pushing the timetable beyond what was outlined by Prime Minister Kyriakos Mitsotakis less than a week ago.
Mitsotakis said in an interview with state broadcaster ERT on Sept. 17 that the government would announce the measures this week, including steps aimed at bringing the opening price of heating oil below €1.75 a liter, a blanket increase in the heating allowance and an extension of diesel support through October. He also indicated that domestic refineries could contribute to the effort. Six days later, the package has yet to be finalized.
Finance Ministry sources now say announcements are not expected in the next two days and may not come before the end of the week, as officials monitor oil markets and geopolitical developments before deciding how large an intervention will be required. The ministry believes it has some room to wait as Greece’s heating-oil season does not begin until Oct. 15, giving officials more time to settle the size of the intervention and the contribution expected from domestic refineries.
The bigger question is where oil prices settle. Brent crude was trading at about $96 a barrel, down roughly 4.8% over the past five days. The pullback has eased some of the immediate pressure, but prices remain high and officials are reluctant to lock in the cost of the package while markets remain volatile.
Finance Ministry officials are also watching developments regarding the US -Iran conflict and the situation in the Strait of Hormuz, diplomatic contacts surrounding the United Nations General Assembly and the war in Ukraine, including talks over a possible energy ceasefire between Russia and Ukraine. Saudi Arabia’s East-West pipeline has also resumed operations with limited flows, offering an alternative route for crude exports to the Red Sea that bypasses the Strait of Hormuz.
Finance Ministry officials are waiting to see whether oil prices fall further and remain lower, which would reduce the amount of state support required. The broad outline of the package is already in place; what remains unresolved is the size of the intervention.
One element that remains less certain is what will happen with the special consumption tax on fuel. A possible change is still under consideration but, for now, is not part of the measures that have been agreed upon.
With information from OT.gr and Reuters
