Greek Prime Minister Kyriakos Mitsotakis announced on Friday that motorists across Greece will benefit from lower fuel prices after the government reached an agreement with the country’s two major oil refineries.
Under the temporary arrangement, gasoline prices will be reduced by 10 euro cents per litre, while diesel prices will fall by 5 euro cents per litre until the end of August, providing relief during the peak summer travel season.
Mitsotakis revealed the measures while addressing parliament in response to concerns from an opposition lawmaker over the rising cost of living, which has placed increasing pressure on household finances.
The initiative is aimed at cushioning consumers from higher energy costs linked to the recent conflict involving Iran, which has fuelled volatility in global oil markets and pushed up fuel prices.
Demand for fuel typically rises during the summer as millions of Greeks travel to holiday destinations across the mainland and the country’s islands, making the timing of the price cuts particularly significant.
Although Greece has made a strong economic recovery since its 2009–2018 debt crisis through tax reductions and wage increases introduced by Mitsotakis’ government since 2019, inflation has continued to erode purchasing power.
The government has already introduced support measures this year, including subsidies for fuel and fertilisers, alongside discounts on ferry fares to ease the financial burden on households.
Authorities have also pledged to lower the cost of food and other essential goods from September following consultations with domestic suppliers and supermarket operators.
The latest fuel price agreement forms part of the government’s broader effort to shield consumers from inflation while maintaining economic stability amid ongoing geopolitical uncertainty.
The announcement comes ahead of Greece’s parliamentary election next year, as the ruling New Democracy party seeks to strengthen support by addressing rising living costs through targeted relief measures.