Greece increases diesel subsidy to 20 cents and deploys flood relief team to Crete

Flood response in Crete

Emergency response units mobilized across Crete following severe autumn storms that flooded homes and disrupted local infrastructure. The Ministry of Climate Crisis and Civil Protection placed the island on high alert, convened its Risk Assessment Committee, and issued mobile warnings through the 112 emergency network to limit transit in hazardous zones. Emergency rescue personnel conducted interventions to extract residents trapped by rising waters, while regional authorities and municipal crews worked to restore road connections to cut-off areas. A dedicated government delegation travels to Crete on Monday to coordinate damage inspections and oversee recovery procedures. Prime Minister Kyriakos Mitsotakis outlined the operational focus of the relief efforts.

First priority is human life and immediately afterwards support for those affected.

Domestic fuel relief package

Prolonged geopolitical disruption around the Strait of Hormuz increased price pressures across international fuel markets, prompting immediate domestic interventions. For the next 15 days, Greece is raising the state pump subsidy on transport diesel from 10 cents to 15 cents per litre. A combined discount from domestic refineries adds another 5 cents, bringing the total reduction at the pump to 20 cents per litre. The government also plans to introduce support measures for heating oil before 15 October 2026, targeting a consumer price below 1.75 euros per litre alongside an increase in the baseline heating allowance.

The cabinet will review energy prices on a fortnightly schedule to adjust relief as conditions evolve. Mitsotakis addressed the economic challenge in his weekly message.

What comes first is not letting a global crisis turn into a national impasse for Greek households. We know that we cannot solve the problem as if by magic, but we are trying to provide real relief.

Demands for European fiscal flexibility

Addressing the wider market volatility, Greece requested increased budgetary flexibility from the European Union to support vulnerable households. Mitsotakis argued that existing European energy rules and market frameworks were established during calmer periods of low energy prices and cannot effectively absorb modern geopolitical shocks. He stated that national and European authorities cannot rely merely on recommendations urging citizens to reduce energy consumption, calling instead for coordinated policy responses.

I insist, however, on saying that this energy turmoil is a European problem and cannot be dealt with only through advice to restrict consumption. Bold, common solutions are needed urgently. For this exact reason, Greece asks Europe for greater fiscal flexibility.

Timeline and economic measures

In addition to energy relief, the government outlined broader domestic economic measures, including deploying surplus value-added tax revenue to assist consumers. The administration expanded the number of monthly installments available to settle overdue public liabilities and introduced stricter regulatory conditions for loan servicers managing non-performing debt portfolios.

These policy initiatives coincide with the 52nd anniversary of the founding of the New Democracy party, with officials stating that public assistance will remain calibrated to fiscal capacity.