Fuel subsidy: Fuel Pass locked in for the coming months

A new round of fuel subsidies is set for the coming months. With gasoline prices continuously rising and inflation at 11.3% in May, the government is preparing new extraordinary measures to fight the effects of price hikes on citizens’ incomes.

The new interventions being considered include an extension of the fuel subsidy for petrol with more money and more beneficiaries of the fuel pass, and an extension of the subsidy for diesel at the pump with the amount adjusted upwards.

Mitsotakis on the Fuel Pass

The Prime Minister heralded the new measures, on public broadcaster ERT, but refused to comment further ahead of announcements next week. Mr. Mitsotakis said that measures will mirror measures already taken, albeit more enhanced, since the state can afford to offer a respite for citizens during the summer.

What the package includes

– Expansion and extension of the fuel pass, for at least another two months, and widening of beneficiary pool.

– Increase of the subsidy of 30-50 euros with emphasis on the islands and the income criterion in order for more citizens to receive the benefit.

– The income threshold of 30,000 euros might increase to 45,000 euros net after taxes, which applies to the electricity subsidy, depending on how the state budget shapes up by next week.

– There is a proposal to subsidize the price of gasoline directly at the pump, but this has a large budgetary cost.

– Extension of the subsidy for diesel after June and the amount of the state subsidy for the pump will be increased. This amount currently comes to 12 cents per liter without VAT, and about 15 cents per liter VAT included.

The price of gasoline

Yesterday, the average price for gasoline stood at 2,408 euros per liter, while in some areas it far exceeded 2.6 euros and even reached 2.8 euros per liter in remote areas. As far as diesel is concerned, the average price is over 2 euros per liter throughout Greece.