Greek Government Announces Temporary Fuel Price Reductions for Summer 2024
Government Measures to Address Rising Fuel and Living Costs
Impact of Iran War on Fuel Prices
ATHENS, July 10 (Reuters) - Greek Prime Minister Kyriakos Mitsotakis said on Friday that gasoline and diesel costs for consumers would fall during the summer following a government deal with oil refineries aimed at taming the impact of the Iran war on fuel prices.
Greece's Economic Recovery and Ongoing Challenges
Post-Crisis Economic Improvements
Greece has recovered from a 2009-2018 debt crisis that forced wage cuts as part of bailout austerity measures, and Mitsotakis' government has cut taxes and raised salaries since it took power in 2019.
Rising Consumer Prices and Household Budgets
But rising consumer prices exacerbated by the conflict in the Middle East have strained household budgets in Greece, where purchasing power still trails the European average.
Details of the Fuel Price Reduction Initiative
Temporary Price Reductions
Responding to a question about the cost of living by an opposition lawmaker, Mitsotakis told parliament Greece's two major oil refineries had agreed to price reductions until the end of next month.
Specific Reductions for Gasoline and Diesel
"Fuel prices will drop by 10 cents per litre and diesel fuel will drop by 5 cents per litre," he said, adding that the relief would be temporary until the end of August.
Seasonal Fuel Consumption Trends
Fuel consumption typically climbs during the summer months when many Greeks travel to the countryside and the islands for their holidays.
Additional Government Support Measures
Subsidies and Discounts
Earlier this year, Mitsotakis' ruling New Democracy party, which holds a majority in the 300-seat parliament, announced subsidies for fuel and fertilisers and discounts on ferry tickets.
Future Plans for Cost Relief
It has also promised cheaper food and other essential goods from September following government-led consultations with domestic suppliers and supermarkets.
Political Context
A parliamentary election is due next year.
(Reporting by Angeliki Koutantou;Editing by Helen Popper)
