The second-largest decrease in the price of diesel among the 27 member states of the European Union was achieved by Greece between April and May, a sign that our country managed to contain the price hikes on the most critical fuel for the supply chain amid the global energy crisis triggered by the war in the Gulf.
According to the latest data from Eurostat, the cost of diesel at the pump fell by 8.5% in May compared to the previous month, even though the Strait of Hormuz remained closed at that time, the global crude oil supply was facing serious difficulties, and uncertainty prevailed regarding the sustainability of the ceasefire between the U.S. and Iran.
It should be noted that, based on the daily reports from the price observatory of the Ministry of Development, in the first week following the 60-day agreement to open the Strait of Hormuz, announced last Sunday, the average price of diesel nationwide has fallen by 8.5 lepta per liter, which means that the price decline is continuing.
It should be noted that May was the second month in which the government implemented a subsidy of 20 leptes per liter for diesel fuel, placing particular emphasis on this specific fuel, as it affects transportation costs and can therefore cause widespread and significant inflationary pressures on many goods and services.
Although many European countries opted for a temporary reduction in VAT or the special tax on fuel to address the consequences of the war, only Germany achieved a greater reduction in the price of diesel compared to the subsidy chosen by Greece between April and May, months that cover roughly two-thirds of the conflict in the Middle East.
The average reduction for diesel fuel in the EU was 5.8%, significantly less than Greece’s. The diesel subsidy has been extended through June as well, but by 15 lept per liter.
