Greece sets 10-cent petrol and 5-cent diesel discount through August, details early next week
Vice-President Kostis Hatzidakis said remaining procedural issues will be resolved by Tuesday, clearing the way for the temporary subsidy funded by a 40 million euro contribution from Greek refineries.
Discount details
Greece will temporarily lower pump prices by 10 cents per litre for regular 95-octane unleaded petrol and 5 cents per litre for diesel, Vice-President Kostis Hatzidakis confirmed on Sunday. The measure will run from the day it is activated until the end of August 2026. Hatzidakis, speaking to SKAI TV, said the final technical and procedural steps would be completed within days, allowing the discount to take effect immediately after the announcement.
Within the week, hopefully at the beginning. There are some procedural issues that will be resolved today, tomorrow.
The cut applies only to standard unleaded, not to 100-octane fuels, and the government expects it to cover most of the summer holiday travel period.
Why intervention was needed
Despite a fall in Brent crude prices after Middle East tensions eased, Greek forecourt prices had not moved in step. Hatzidakis pointed to two external pressures: damage to refineries in the Gulf region and a significant reduction in diesel exports by Russia. Those supply-side disruptions kept international fuel markets tight, preventing the usual pass-through of lower crude to end consumers. The combination forced the government to act directly, targeting the two most widely used road fuels. If world prices rise before the discount begins, the net benefit at the pump will be smaller; conversely, if international markets weaken further, the consumer gain will be larger.
Financing through refinery contribution
The entire subsidy is backed by a 40-million-euro pool assembled after talks with Greece’s two domestic refineries. The money will be channelled straight into lower pump tags rather than general tax relief. The mechanism is designed to ensure that the advertised cuts are visible at service stations relative to the price level that would have prevailed without the measure. The discount is time-limited and will not be extended beyond August under the current plan.
The government will use this offer so that there is a reduction of 10 cents in petrol and 5 cents in diesel.
Political backdrop
Hatzidakis also pushed back against speculation that the fuel discount was rolled out alongside a series of high-profile arrests (the Marfin bank fire case and the murder of Vaya Nestora in Thessaloniki) because the government was preparing for early elections. He dismissed such talk as unfounded, saying the administration moves only when investigative results are ready, not according to political calendars. The remarks came as the opposition seized on the timing to question the government’s motives, but Hatzidakis described the idea as “crazy scenarios” and insisted there was no link between the fuel intervention and any electoral calculations.
