The Greek government is planning to introduce a temporary cap on profit margins for fuel and supermarket products to prevent price gouging. The move comes as authorities monitor possible economic repercussions from the ongoing crisis in the Middle East.
Prime Minister Kyriakos Mitsotakis announced the measure during a meeting with President Konstantinos Tasoulas, saying the cap will apply for an initial three-month period.
Further details of the policy will be presented at 2 p.m. by Government Vice President Kostis Hatzidakis, Environment and Energy Minister Stavros Papastavrou and Development Minister Takis Theodorikakos.
“The government is imposing a cap on profit margins for fuel and supermarket products with a three-month horizon,” Mitsotakis said. The PM also warned that market volatility must not lead to profiteering, while highlighting the fact that the government is closely monitoring the crisis’ economic impact.
The measures will include limits on profit margins in both the wholesale and retail fuel market.
The goal, officials say, is to prevent businesses from adding unjustified markups during a period of international price volatility.
Government Seeks to Reassure Consumers
Government Vice President, Kostis Hatzidakis, has attempted to reassure the public about fuel availability, after reports emerged of drivers rushing to gas stations to top up fuel “I want to reassure Greek citizens that there are sufficient reserves and there is no reason for concern,” he said on Monday.
He went on to explain that the government is closely monitoring the market to prevent businesses from exploiting the situation.
“It is one thing for prices at the pump to rise because international prices increase,” Hatzidakis said. “It is another for someone to add an extra markup and take advantage of the situation.”
Hatzidakis went on to say that the government has a clear view of market conditions and will intervene where necessary, stressing that preventing profiteering is a priority.
He stressed that the government will respond depending on the severity of the economic impact, while maintaining fiscal stability.
He acknowledged that Greece does not have the economic strength of countries, but said the country is in a stronger position than it was a decade ago. “We are not Switzerland, Austria or Germany. But we are also not the Greece of 2019 or the previous decade. That is because there were politicians and a government with the courage to say no to populism and keep the public finances in order,” Hatzidakis said.
Because of that, he added, the government now has financial reserves that could be used to support households if needed. “If we had followed reckless policies, there would be no funds available to discuss support measures today.”
