Greek PM announces deal to cut fuel prices over the summer

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 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.

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.

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.

"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.

Fuel consumption ​typically climbs ⁠during the summer months when many Greeks travel to the countryside and the islands ​for their holidays.

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.

It has ⁠also ​promised cheaper food and other essential ​goods from September following government-led consultations with domestic suppliers and supermarkets.

A parliamentary election ​is due next year.


-Reuters