Prime Minister Kyriakos Mitsotakis has announced a package of measures to contain energy costs, particularly fuel prices, with final details expected on Monday. The focus is on heating oil, with the government aiming for a starting price below €1.75 per liter, where it stood at the end of the previous sales period. Mitsotakis said the price could approach €2 per liter without intervention.
The plan includes an across-the-board increase in the heating allowance, the reinstatement of a cap on profit margins across the fuel supply chain, and the extension of the diesel subsidy through October. Support for heating oil at the pump is also planned to limit costs for households ahead of winter.
A temporary reduction in the Special Consumption Tax (SCT) on fuel may also be introduced if European fiscal flexibility is secured.
A temporary reduction in the SCT on fuel remains under consideration. The government has linked such a move to European fiscal flexibility that would prevent the cost from counting toward national spending limits. Unlike the other measures, an SCT reduction therefore depends on European decisions and the final fiscal cost.
There is greater scope for a tax reduction on gasoline. Greece’s SCT on unleaded gasoline stands at €700 per kiloliter, compared with the EU minimum of €359, while the rate on diesel is €410 per kiloliter, closer to the EU minimum of €330.
Sources: Kathimerini
What is fyi.news?
