The government is preparing a new €32m intervention to limit the impact of higher fuel costs on ferry fares and ensure sea connections to the islands.
The measure, developed in cooperation with the institutional representatives of the ferry sector, is a joint initiative of the Ministry of Maritime Affairs and Insular Policy and the Ministry of National Economy and Finance, following earlier announcements by Prime Minister Kyriakos Mitsotakis on the need to support ferry services and island communities.
Announcing the new measure, Minister of Maritime Affairs and Insular Policy Vassilis Kikilias said:
“Ferry services are vital to our islands and to islanders’ ability to travel. Higher fuel costs are putting significant pressure on ferry companies. That is why we are introducing a new €32m measure to reduce the burden on companies, help keep costs in the ferry sector in check and provide tangible support to islanders.
Specifically, the measure provides for financial support of €0.16 per litre of marine fuel for purchases made between 1 September and 31 December 2026. It applies both to ferry companies operating commercial routes and to those serving public service routes (unprofitable routes).
The Ministry of Maritime Affairs and Insular Policy, the Ministry of National Economy and Finance and the AADE are working closely to finalise the terms of the measure, with the aim of establishing a fully electronic process for applying for, checking and paying the support, using electronic cross-checks of the relevant documents.
The measure is expected to be implemented under the European state aid framework METSAF, subject to the required approval from the European Commission. It may be extended if the fuel price crisis continues and the corresponding European framework is extended.
The new measure adds to the intervention of up to €60m, established for the first time this year, to compensate ferry companies for mandatory discounts. This fulfils a longstanding industry demand and enables us, despite the energy crisis, to keep ferry fares in check for a second consecutive summer.
Together, the two measures, with a total budget of up to €92m, strengthen efforts to maintain the viability of the ferry network and ensure uninterrupted transport services to the islands.