The Greek government is introducing a new €60 million support mechanism for the country’s ferry sector as operators face rising fuel costs, with the aim of preventing those expenses from being passed on to passengers through higher ticket prices.
The Ministry of Maritime Affairs and Insular Policy is closely monitoring international marine fuel prices after the sharp increase in the cost of Marine Gas Oil (MGO) significantly raised operating expenses for ferry companies. So far, however, the higher costs have not resulted in new fare increases.
Officials have also prepared alternative support measures that could be activated if fuel price pressures persist and begin affecting passenger fares.
New Compensation Scheme
A key element of the government’s plan is a new compensation mechanism that will reimburse ferry operators for mandatory social discounts required by law, rather than commercial discounts offered voluntarily.
The program, which will be implemented for the first time in 2026, is expected to provide the industry with an additional €60 million in liquidity.
The measure will compensate ferry companies for part of the revenue lost from reduced fares granted to eligible passenger groups, including children up to five years old, low-income individuals, large families, students, people with disabilities, war pension beneficiaries, and their eligible companions.
Until now, ferry operators have borne the full cost of these mandatory discounts. Under the new system, the Greek state will reimburse companies based on the actual number of discounted tickets issued.
Payments will be made in stages, beginning with an advance payment followed by final settlement after authorities complete verification procedures using electronic records maintained by both the ministry and ferry companies.
The implementation framework was presented last Wednesday to Greece’s Coastal Shipping Council, allowing industry representatives to review the proposal and suggest technical improvements before payments begin.
The process will be finalized through a Joint Ministerial Decision by the ministries of National Economy and Finance and Maritime Affairs and Insular Policy, which has already been drafted and is awaiting signature.
Support Amid High Fuel Costs
Officials consider the financial support particularly important as fuel continues to account for a significant share of ferry operating expenses.
The compensation mechanism is also intended to help stabilize ticket prices by reducing the risk that the full increase in energy costs will be transferred to travelers.
Ferry companies have also benefited from fuel hedging agreements, which secure part of their fuel supplies at predetermined prices, while high passenger demand during the summer tourist season has helped offset some of the increased operating costs through stronger revenues.
Pilot Phase Begins in 2026
The reimbursement system will be introduced gradually, with 2026 serving as a pilot year.
For this year, payments will be divided into two cycles. The first will cover mandatory discounted tickets issued between March and May, while the second will include tickets issued from June through October.
Authorities aim to make the first disbursement during August to provide ferry operators with additional liquidity during the peak tourism season, when financing needs and fuel costs remain particularly high.
Companies applying for compensation will be able to request an advance payment by submitting an application, a sworn declaration, tax and social security clearance certificates, and any supporting documentation specified in the Joint Ministerial Decision.
Under the current plan, the advance payment may amount to up to 30% of the expected reimbursement, with the remaining 70% paid after verification and final settlement. Alternatively, companies may choose not to receive an advance and instead submit all documentation by Nov. 15 for a single review and payment.
Electronic Verification System
Beginning in 2027, the compensation mechanism is expected to cover the entire calendar year while continuing to operate through two payment phases.
A central component of the system will be Greece’s Electronic Passenger Reservation and Ticket Issuance System, which records all ferry tickets issued by operators.
The Ministry of Maritime Affairs will use the system to verify which tickets received mandatory social discounts, identify the beneficiary category, and calculate the revenue forgone by each company.
The ministry’s records will be cross-checked against ferry companies’ ticketing systems so that reimbursements are based exclusively on verified journeys. Ferry operators will remain responsible for checking passengers’ eligibility documents, such as disability cards, student identification, or other supporting certificates at boarding.
