Greece caps heating oil under 1.75 euros and seeks EU fiscal leeway for fuel tax cuts

Energy price caps and heating allowances

Greek Prime Minister Kyriakos Mitsotakis outlined upcoming state measures to limit household energy costs during his weekly government report on 20 September 2026. The government plans to partner with domestic refineries to establish a starting retail price for heating oil below 1.75 euros per liter, an entry point lower than the closing rate of the previous winter season. Authorities will also expand the heating allowance horizontally to include households using alternative energy sources alongside those using oil. Support allocations will remain weighted toward colder geographic regions with higher heating demands. In addition to heating measures, the state subsidy for diesel fuel will continue throughout October.

The prime minister explained the joint intervention with domestic energy suppliers in his Sunday post.

In the coming days we will announce a significant intervention by the government and refineries regarding heating oil, so that the starting price is set below 1.75 euros per liter, lower than the level at which the previous season closed. At the same time, we are proceeding with an across-the-board increase in the heating allowance, not only for those who use oil, but also for households that heat with other forms of energy.

European fiscal rules and fuel taxation

Mitsotakis maintained that national budget reserves alone cannot absorb prolonged regional energy price spikes without broader European Union coordination. He indicated that Athens remains open to temporary fuel excise tax reductions if European budget regulations exempt such emergency relief from national spending ceilings. The Greek administration continues to lobby European institutions for regulatory flexibility, arguing that international energy market volatility requires coordinated intervention at the continental level. The proposal links domestic tax relief directly to potential exemptions under EU fiscal governance rules.

Mitsotakis stressed the necessity of European leeway during his weekly address.

If the European Union allows emergency national interventions, without these being counted toward spending limits, we could examine a temporary reduction of taxation on fuel.

Sovereign credit rating upgrades

The prime minister pointed to financial rating actions within the preceding 24 hours as evidence of sustained economic progress. Moody's upgraded Greece's sovereign credit outlook, while European agency Scope raised the country's credit rating. Mitsotakis noted that these credit evaluations distance Greece from the period when it lacked investment-grade status and faced punitive borrowing costs. Lower sovereign yields reduce state financing expenses, assist private capital formation, and generate fiscal revenue to fund public healthcare, education, and social programs.

Parliamentary clash on constitutional reform

Mitsotakis also addressed domestic politics, criticising parliamentary opposition parties, particularly PASOK, over their posture during recent debates on constitutional revision. The prime minister accused opposition lawmakers of registering "present" votes on structural amendments that aligned with their published party manifestos. The proposed constitutional changes cover the reform of Article 16 regarding higher education, the legal framework governing ministerial accountability, and procedural safeguards for the judiciary.

Mitsotakis challenged the opposition's voting strategy on constitutional articles.

When you declare that Article 16 must change, that ministerial responsibility needs different treatment, and that Justice must be shielded further, you cannot at the same moment choose 'present' and make every change more difficult.

The address was published while Mitsotakis was in San Francisco for meetings with technology executives, prior to his departure for the United Nations General Assembly in New York.