The surge in global oil prices is bringing Greece closer to extending fuel support measures, with the government’s economic team weighing both the continuation of the diesel subsidy and a possible extension of the “fuel pass” program. While the current subsidies are set to expire at the end of May, ongoing energy instability and geopolitical uncertainty are creating mounting pressure to keep them in place.
The price of Brent crude reached $115 per barrel yesterday, signaling another rise in fuel and transportation costs, after hitting as high as $126 per barrel last week. It is worth noting that revised downward projections for growth and inflation—outlined in the annual progress report of the Medium-Term Structural Plan—were based on the assumption that Brent would average $89 per barrel this year, an estimate that now appears increasingly uncertain.
Rising fuel prices are triggering a chain reaction of increases across a wide range of goods and energy costs, further fueling inflationary pressures.
In this environment, the diesel subsidy remains front and center, as keeping diesel prices in check acts as a brake on transportation costs and, by extension, on rising product prices. The measure does not affect only drivers, but the entire supply chain. The flat subsidy of 20 cents per liter has played a crucial role in keeping prices below €2 per liter.
At the same time, the extension of the fuel pass for the June–July period is also under consideration. The measure continues to serve as a direct cash boost for households, particularly those who rely on daily car use. Its potential extension aims to absorb part of the increase in unleaded gasoline prices, which more directly impact everyday living. Gasoline prices are currently hovering around €2 per liter.
A key factor in the final decisions will be the fiscal “buffer” of approximately €200 million. This reserve acts as a safety net, allowing the economic team to activate targeted interventions depending on how the crisis in the Middle East evolves. The cost of a one-month extension of the diesel subsidy is estimated at around €40 million, while extending the fuel pass for two months would reach approximately €130 million.
