The end of the 15-lept-per-liter diesel subsidy had a very limited impact on prices at the pump, according to initial data, with the result that the cost of diesel remains significantly lower than it was when the extension of the ceasefire between the United States and Iran was agreed upon, 2.5 weeks ago, government sources say.
According to the Ministry of Development’s fuel price observatory, on July 1—the first day after the three-month subsidy expired— the average price of diesel nationwide stood at 1.648 euros per liter, just 4 cents higher than on June 30.
This means that 74% of the increase that could have resulted from the expiration of the 15-lept subsidy was absorbed before it reached consumers, the same sources add.
Thanks to the minimal impact that the end of the subsidy had at the pump, the overall downward trend in diesel prices in recent times was not reversed.
Specifically, on June 14, the day the agreement between Washington and Tehran was announced, the average retail price of diesel in Greece was 1.739 euros per liter. On June 30, the last day the subsidy was in effect, the price had fallen by 14 lepta to 1.608 euros, just 4 lepta shy of the 1.568 euros recorded on February 28, when hostilities began in the Gulf.
Government officials involved in planning to address the war’s impact on the fuel market expressed satisfaction that the end of the subsidy had only a very minor effect on retail prices.
The same sources emphasized that prices at the pump should continue to decline in the coming weeks, in line with the gradual normalization of supply in the international oil market.
It should be noted that, from the very beginning of the war, the government has placed particular emphasis on keeping the price of diesel fuel in check, as it is a fuel widely used in the supply chain and can therefore affect the pricing of thousands of goods and services.
According to the European Commission’s weekly oil reports, Greece has managed to curb the rise in diesel prices better than the EU average.