Refineries to Foot €40M Bill for Greek Fuel Price Cut

Greece’s two refining groups, HELLENiQ ENERGY and Motor Oil, will each hand the state €20 million to bankroll the fuel price cut Prime Minister Kyriakos Mitsotakis announced in Parliament on Friday, Deputy Prime Minister Kostis Hatzidakis said, putting the price tag on the intervention at €40 million and, as he pointed out, at zero fiscal cost to the budget.

Speaking on ERT News, Hatzidakis said pump prices for gasoline and diesel had been climbing since the start of July, prompting the government to approach the refineries for help. Under the arrangement, gasoline will fall by 10 cents a liter and diesel by 5 cents through the end of August, with the measure kicking in next week once technical details are finalized with the finance ministry.

The reductions are calculated against pump prices as of Friday. Retail fuel prices move daily with international benchmarks and the euro-dollar rate, and Hatzidakis acknowledged that if global prices rise before the measure takes effect, the visible gap will narrow accordingly. If they fall, consumers stand to gain more. What is guaranteed,