Greece prepares energy package to cap heating oil below 1.75 euros per liter
The Greek government will unveil a support package on Monday to subsidize heating oil and transport diesel following Middle East oil supply disruptions.
Upcoming heating support package
The Greek government will present a detailed energy support package on Monday to shield households and businesses from elevated fuel costs ahead of the winter season. The core objective of the intervention is to keep the starting retail price of heating oil below 1.75 euros per liter when market distribution begins on 15 October 2026. Without government intervention, current market data indicates that retail heating oil prices would reach close to 2.00 euros per liter due to international crude oil pressures. To achieve the target price, authorities plan a combined subsidy of at least 0.25 euros per liter, funded jointly by the state budget and domestic refineries. This pump-level discount will function alongside a horizontal increase in the direct heating allowance paid to households, with competent ministries evaluating adjusted income and asset thresholds. The 1.75 euro benchmark matches the price level recorded at the close of the previous heating season in spring 2026.
- Brent crude settles at 105 dollars per barrel following Saudi pipeline attack
- Greek government schedules detailed announcement of the energy relief package
- Transport diesel subsidy extension takes effect for the month
- Subsidised heating oil distribution opens to retail consumers
Transport diesel subsidies and margin limits
In addition to household heating measures, the government plans to extend the existing transport diesel subsidy throughout October 2026. The current mechanism provides a total discount of 0.15 euros per liter, with 0.10 euros financed through the state budget and the remaining 0.05 euros absorbed by oil refineries. Despite this ongoing price support, retail diesel in Greece remains above 2.00 euros per liter, sustaining cost pressures across freight networks, commercial logistics, agricultural operations, and business operating budgets. Government officials consider the diesel subsidy difficult to withdraw while international crude markets remain at current levels. To prevent abusive commercial pricing, the cabinet is also preparing an emergency cap on profit margins across the fuel sector. This temporary regulatory limit will apply to both wholesale fuel distributors and retail service stations.
- Peak after attack
- 110 $/barrel
- Friday close
- 105 $/barrel
Geopolitical supply pressures and EU fiscal proposals
The domestic policy response follows heightened volatility in global oil markets linked to ongoing hostilities in the Middle East. A recent Houthi attack damaged a key pipeline transporting crude oil from Saudi Arabia to Red Sea export terminals, restricting maritime shipping access. Following the infrastructure damage, benchmark Brent crude rose close to 110 dollars per barrel before settling at 105 dollars per barrel on Friday. Government officials indicated that the extent of future national relief measures will depend on global oil and natural gas price trajectories in the coming months. Prime Minister Kyriakos Mitsotakis announced that he will raise the issue of energy taxation at the upcoming European Council summit. Mitsotakis and several other European leaders will request fiscal flexibility from the European Union to implement temporary reductions in national special consumption taxes on fuels.
