As the international energy crisis puts mounting pressure on households, the government is introducing new, substantial support measures. By cutting fuel prices immediately and increasing the heating allowance by 30%, it is easing the burden on households and reducing transport costs, with greater support for those most in need.
1. What the government is providing: the new subsidies
From 15 to 31 October, three direct government subsidies will be applied at the pump:
- 20 cents per litre for heating oil,
- 15 cents per litre for diesel,
- 10 cents per litre for 95-octane unleaded petrol (from 17 October).
The subsidy is applied directly to the sale price, with no applications or income criteria. Consumers benefit immediately.
The cost of the three measures for the second half of October amounts to €46 million.
2. A bigger reduction with discounts from refineries
Discounts announced earlier by refining companies are added to the government subsidy, bringing the total benefit to:
| Fuel | Government | Refineries | Total reduction |
|---|
| Heating oil | 20 cents | 20 cents | 40 cents/litre |
| Diesel | 15 cents | 5 cents | 20 cents/litre |
| 95-octane unleaded petrol | 10 cents | – | 10 cents/litre |
The government and refineries are jointly absorbing 40 cents from every litre of heating oil and 20 cents from every litre of diesel.
3. Heating oil: from €1.95 to €1.55
Actual cost of about €1.35 for recipients of the heating allowance
Heating oil is expected to go on sale at an average price of about €1.95 per litre, with a likely range of €1.90 to €2, depending on how international prices evolve.
With the combined measures from the government and refineries:
- The price falls by 40 cents per litre.
- The estimated pump price drops to €1.55 per litre (between €1.50 and €1.60, depending on how international prices evolve).
- For households eligible for the increased heating allowance as well, the actual cost, on this basis, comes to about €1.35 per litre.
In other words, for recipients of the heating allowance, combined government support and the refineries’ discount significantly reduce the actual cost, compared with the €1.75 per litre at which prices ended in April. For these recipients, the total relief offsets most of the increase.
4. One-off 30% increase in the heating allowance for the whole winter
In addition to the cut in prices at the pump, the government is increasing the heating allowance across the board by 30% for the 2026-2027 winter season.
The increase applies to all subsidised forms of energy: heating oil, electricity, natural gas, firewood, pellets and other eligible fuels.
- The maximum allowance rises from €1,200 to €1,560.
- Income and asset criteria remain unchanged.
- Last year, 1.17 million households received support for all forms of heating.
- An estimated 750,000 households, or almost 60% of those using heating oil, meet the criteria for the relevant allowance.
The support is particularly significant for lower-income households, as it comes on top of the across-the-board cut in pump prices.
In practice, a household that would have been eligible for an allowance of €500 will receive €650. A household that received €800 last year will receive €1,040 this year.
The application platform is expected to open by 10 November, while the advance payment, which is also being increased by 30%, is expected to be paid by 23 December 2026.
The additional fiscal cost of increasing the allowance is estimated at €52 million, taking its total budget from €173 million to €225 million, based on last year’s figures.
5. Double protection for households
The new measures include:
- €46 million for direct fuel subsidies in the second half of October.
- An additional €52 million to fund a 30% increase in the heating allowance for the full winter season.
The approach behind the measures is clear: an across-the-board intervention to cut prices immediately, alongside additional targeted support for households most in need.
The government is standing by citizens and making every effort to limit the impact of the energy crisis on their daily lives. Its aim is to contain fuel and heating costs, ease the burden of rising prices on households and protect families’ purchasing power.
Appendix: Measures to tackle the Energy Crisis to date
- Fuel subsidies at the pump totalling €262 million: (a) a subsidy for diesel at the pump of 20 cents (including VAT) in April and May, 15 cents in June, 10 cents in August and September, and 15 cents in October; (b) a subsidy for heating oil at the pump of 20 cents (including VAT) for the second half of October; and (c) a subsidy for 95-octane unleaded petrol at the pump of 10 cents (including VAT) for the second half of October.
- A 30% increase in the heating allowance for the 2026-2027 winter season, at an estimated cost of €52 million.
- A Fuel Pass for April-May 2026, worth €60 in the islands and €50 elsewhere in Greece, at a cost of €113 million.
- A fertiliser subsidy covering 15% of invoices for full-time farmers for the period from 15 March to 31 August 2026, at a cost of €48 million.
- Compensation for ferry operators for mandatory ticket charges, at an annual cost of €60 million.
- A subsidy for industrial electricity under the CISAF/METSAF framework, aimed at containing prices across the supply chain, on condition that at least 50% of the subsidy is directed towards investments that reduce CO₂ emissions and energy costs. The estimated cost is €95 million (charged to 2027).
- A one-off payment of €150 per child in June 2026, reaching 80% of families with children (1 million households), at a cost of €232 million.
- Higher income thresholds for the rent rebate (from €20,000 to €25,000 and from €28,000 to €35,000, plus €5,000 for each child; for single-parent households, €39,000 plus €5,000 for each child after the first). The measure covers 85% of tenants (about 70,000 additional tenants, bringing the total to 1 million), at an annual cost of €25 million.
- In April, the government announced wider income thresholds for pensioners receiving €250, so the payment would reach 85% of pensioners. It also announced an increase in the payment to €300, at an additional annual cost of €215 million. With the extension to all pensioners over 65 (2.2 million recipients in total) and the increase to €400 announced at the Thessaloniki International Fair, the additional cost compared with 2025 amounts to €516 million.
Total cost: €1.4 billion, of which €862 million is for one-off measures to address energy costs and €541 million for the permanent increase in support for pensioners and the expansion of the rent rebate.