Greece

Athens, September 21, 2026. Kyriakos Mitsotakis has chosen targeted subsidies over a general tax cut to address the surge in fuel prices, in his weekly report published on Sunday. The Prime Minister announces a "significant intervention by the government and refineries" on domestic heating oil, with a starting price set below 1.75 euros per liter, a level lower than that at the end of the previous season. According to To Vima, the internal target of the Ministry of Economy would be even more ambitious: to start sales between 1.50 and 1.60 euros per liter when the market opens on October 15. Without intervention, the price would be around 2 euros.

The government is complementing the scheme with a "universal increase" in the heating allowance, extended to all households regardless of their energy source, with a strengthened focus on areas where the climate has the most impact. The subsidy for mobility diesel, on the other hand, is being extended for the entire month of October.

The pressure on road fuels remains high: To Vima reports prices that have already risen to 2.39 euros per liter in the Cyclades according to the Price Observatory, with upcoming readings expected to be around 2.50 euros, a level considered "unprecedented for Greek data". The newspaper estimates that the announced aid "seems weak to mitigate the effects on inflation and the Greek economy".

Mitsotakis is making a temporary reduction in fuel taxation conditional on a green light from the European Union, which is expected to authorize exceptional national interventions without them being counted in the spending limits. Until this clarification from Brussels, Athens is relying on direct aid.

The Prime Minister is linking this communication to the double improvement in the sovereign rating by Moody's and Scope, explaining that better credibility allows for cheaper borrowing, attracting investment, and financing health, education, and social protection. The detailed announcements on heating oil and diesel are expected "during the week or at the latest by the end of September", according to To Vima.

To Vima emphasizes that this price level, "unprecedented for Greek data", threatens both household budgets and business treasuries, while the measures prepared by the government's economic team seem still insufficient in the face of the inflationary surge.