The Greek government has announced the extension of fuel subsidies for gasoline, diesel, and heating oil, following a sharp increase in energy prices. The decision, made by the Ministry of Development and Investments, aims to alleviate the financial burden on households and businesses. The subsidy, initially set to expire in March 2026, will now be extended until the end of the year.
The extension comes as global energy prices have risen significantly, driven by geopolitical tensions and supply chain disruptions. According to the Ministry, the average price of gasoline in Greece has increased by 25% since the beginning of the year. The subsidy covers a portion of the cost for both private and commercial users, with the government covering 60% of the price for gasoline and diesel, and 50% for heating oil.
This move follows a similar decision by the government in 2025, when it introduced temporary subsidies to support the energy sector amid rising inflation. The latest extension is part of a broader economic strategy to stabilize the domestic market and prevent a potential economic slowdown. The government has also announced plans to review energy pricing policies in the coming months, with a focus on long-term sustainability.
The decision has been welcomed by consumer groups and business associations, who argue that the subsidies are essential for maintaining economic stability. However, some economists have raised concerns about the long-term impact of such measures on public finances. The government has stated that it will monitor the situation closely and adjust the program as needed.
