Attica gas station owners president Nikos Papageorgiou warned that Greek consumers face at least three months of high petrol and heating oil prices. Speaking during an interview on Greece's SKAI television network, Papageorgiou urged households to prepare for extended financial pressure as international energy market instability continues to feed directly into domestic fuel pumps.
With the seasonal release of heating oil approximately two months away, Papageorgiou expressed deep pessimism regarding price trajectories, noting that unleaded petrol is anticipated to hover near two euros per litre throughout the upcoming quarter. He cautioned that households should not view current price pressures as a temporary minor adjustment, but rather as a prolonged period of elevated energy expenses.
Taxation and transport costs in Greece
Explaining the factors sustaining elevated retail prices across Greek service stations, Papageorgiou highlighted the substantial impact of domestic taxation alongside logistics expenses. Greece imposes both a high Special Consumption Tax, known locally as EFK, and Value Added Tax on refined petroleum products. These statutory levies, combined with transport and distribution costs, account for a major portion of the final price paid at the pump.
In Greece, fuel taxation represents one of the highest fiscal burdens in the European Union, with indirect taxes making up over half of the retail price of petrol. Furthermore, the country's unique geography, which features hundreds of inhabited islands across the Aegean and Ionian seas as well as rugged mountainous regions on the mainland, adds significant freight overheads. Freight operators must transfer fuel via tank trucks and coastal tankers, driving up retail prices in remote prefectures compared to major urban hubs such as Athens and Thessaloniki.
Papageorgiou noted that the Greek fuel market demonstrates an unusually rapid reaction to international events, sometimes moving inversely to crude oil trends. He explained that refined products such as motor petrol and diesel trade on independent international markets, meaning retail prices in Greece can rise even when global benchmark crude prices decline.
Subsidies and household budget impact
Addressing current price levels and potential market conditions without state support, Papageorgiou outlined the figures facing Greek motorists. Without existing subsidies, automotive diesel would reach approximately 2.10 euros per litre, while unleaded petrol would stand at around 2.05 euros per litre.
He stressed that consumers should prepare for sustained market tension rather than a slight per-litre increase that would merely add 30 euros per month to a family's budget. Instead, prices are expected to remain anchored around the two-euro threshold for at least the next three months.
Heating oil in Greece is traditionally distributed from mid-October through April, a period during which millions of households rely on residential fuel deliveries to warm apartment buildings and single-family homes. In past years, the Greek government has introduced temporary subsidies or heating allowances to cushion low-income households against winter price spikes. Papageorgiou cautioned that with energy markets under strain, early cautious management of household energy consumption will be vital.
Global conflicts and shipping bottlenecks
Papageorgiou linked the ongoing price strain to wider geopolitical conflicts and maritime transport disruptions. Pointing to an armed conflict that initially began for four to five days, stretched into four to five weeks, and is now entering its fifth month, he underscored the persistent uncertainty clouding energy markets.
He placed critical emphasis on developments surrounding the Strait of Hormuz, warning that if the waterway were to remain closed, the primary challenge for European governments would immediately shift to the physical availability of refined oil products. The situation is further aggravated by vessel congestion at Hormuz, transit obstacles in the Suez Canal resulting from Houthi attacks on commercial shipping, and production cutbacks at refineries damaged by military strikes.
The Strait of Hormuz, located between Oman and Iran, is the world's most crucial oil transit chokepoint, handling roughly a fifth of global petroleum consumption. Meanwhile, attack campaigns by Yemen-based Houthi militants in the Red Sea have forced tanker operators to divert vessels around the Cape of Good Hope, adding weeks to transit times and raising global freight rates. Papageorgiou added that European nations lack sufficient domestic petroleum production, while strategic petroleum reserves in the United States have decreased significantly in recent times, leaving global supply chains vulnerable.
Greek refinery capacity and export market balance
Turning to supply security within Greece, Papageorgiou offered a more reassuring perspective regarding fuel adequacy. He stated that domestic refineries have already proven their resilience during previous international crises, including the disruption triggered by the war in Ukraine.
Greek refiners possess substantial flexibility in procuring crude oil types and adjusting refining processes. However, Papageorgiou pointed out that a significant portion of domestic output is directed abroad, with over 65 percent to 70 percent of refined products produced in Greece being exported to third countries.
Related economic indicators and market updates
The ongoing energy pricing pressures coincide with broader economic developments across Greece, as public authorities and commercial sectors navigate fiscal adjustments and regulatory shifts.
In the social welfare sector, Greece's primary social security agency, e-EFKA, alongside the Public Employment Service, DYPA, announced scheduled benefit disbursements totaling 61,105,430.38 euros. These funds are set to be distributed to 68,370 beneficiaries between August 17 and August 21, providing temporary liquidity to eligible households ahead of autumn expenses.
Concurrently, commercial transport operators in Attica are confronting rising operational costs. Freight agencies based in the Eleonas industrial zone of Athens report that rents for transport hubs and bare-shell site facilities have surged by 30 percent, putting additional financial pressure on logistics firms moving goods across the mainland.
On fiscal policy, Greek authorities are intensifying targeted tax audits and leveraging digital tracking tools to curb tax non-compliance and advance tax justice across commercial sectors.
Industry leaders and economic analysts continue to advocate for structural tax stability, stressing that Greece requires predictable five-year tax frameworks to encourage long-term investment and protect business planning against frequent legislative changes.
