Greece recorded the second-largest decrease in the price of diesel among the 27 member states of the European Union between April and May, a sign that the country managed to keep price hikes in check for the fuel most critical to the supply chain, amid the energy crisis triggered by the conflict in the Middle East, according to government sources.
According to the latest Eurostat data, the cost of diesel at the pump fell by 8.5% in May compared to the previous month, even though the Strait of Hormuz remained at the center of international uncertainty and the global crude oil market was facing serious difficulties.
Pump
The same sources note that, based on the daily reports from the Ministry of Development’s Price Observatory, in the first week following the 60-day agreement to reopen the Strait of Hormuz, the average price of diesel nationwide has fallen by 8.5 lepta per liter, indicating that prices continue to decline.
It should be noted that May was the second month in which the government implemented a subsidy of 20 leptes per liter for diesel fuel, placing particular emphasis on this specific fuel as it affects transportation costs and, consequently, may lead to broader inflationary pressures on goods and services.
Support
According to government sources, although many European countries opted for a temporary reduction in VAT or the special tax on fuels to address the consequences of the crisis, only Germany achieved a greater reduction in the price of diesel compared to the subsidy scheme chosen by Greece between April and May. The average reduction for diesel fuel in the EU was 5.8%, significantly less than Greece’s.
The diesel subsidy has been extended through June as well, but at 15 lepta per liter.