Why are heating oil prices rising sharply in Greece this year?
Current market data show that heating oil would reach around 2 euros per litre without intervention. The government and refineries plan a joint subsidy to bring the retail price below 1.75 euros from mid-October. The 36% year-on-year increase stems from higher international crude prices and the end of previous support schemes that kept the 2025 launch price at 1.09-1.10 euros. On 15 October 2025 heating oil entered the market at 1.09-1.10 euros per litre. Without the new measures the price this year would approach 2 euros, leaving households facing substantially higher costs even after support is applied. The source states that the price remains elevated despite the planned interventions and that the increase will again burden households. No further breakdown of the international price drivers is provided, leaving open how much of the rise is attributable to global markets versus the withdrawal of earlier support. The government is attempting to restrain prices through temporary patches because the expected cost will burden households once more.
How will the heating oil subsidy work?
The subsidy combines state funds and contributions from refineries. It will be applied at the distribution stage so that the final pump price stays under the 1.75-euro threshold. Officials have not yet published the exact split between public and private contributions or the total budget allocated. The aim is to offset the gap that would otherwise push the price close to 2 euros per litre under current market conditions. The source indicates that the intervention targets the retail price directly from 15 October onward. Because the precise allocation of funds between the state and the refineries remains unspecified, the final fiscal impact on the budget cannot be assessed from the available information. The measure is presented as a temporary patch rather than a structural change in pricing. The joint subsidy from state and refineries is intended to limit the price below 1.75 euros per litre once the fuel enters the market on 15 October.
What changes are planned for the heating allowance?
The heating allowance will rise horizontally for all current beneficiaries. The detailed announcement next week will clarify whether income or property criteria will also be widened to increase the number of eligible households. No figures on the size of the increase have been released. The measure is intended to provide broader relief to households already receiving support. The source notes that the increase is horizontal but leaves unsettled whether eligibility rules will be adjusted. Without the forthcoming details on amounts and possible criterion changes, households cannot yet determine whether they will qualify or how much additional support they may receive. The horizontal rise aims to ease the burden on existing recipients while the exact scope of any widening of criteria stays to be confirmed.
Will the diesel subsidy continue in October?
The existing 15-cent-per-litre subsidy on diesel (10 cents from the state and 5 cents from refineries) will be extended through October. Current retail prices remain above 2 euros per litre despite the support, adding costs across transport, agriculture and industry. The continuation is justified by the burden high diesel prices place on multiple sectors of the economy. The source emphasises that the 15-cent subsidy is split between public and refinery contributions and that the retail price still exceeds 2 euros. Because the measure is described as necessary for the functioning of several economic branches, its withdrawal could produce wider price pressures, yet the text supplies no quantitative estimate of those secondary effects. The extension through October seeks to mitigate the impact on all branches of the economy that rely on diesel.
Is a profit-margin cap under consideration?
Authorities are examining the reintroduction of a temporary cap on profit margins at both the wholesale and retail levels. The measure would target possible profiteering and would apply only for the winter period. No legal text or exact margin ceilings have been published. The cap would be reintroduced at the trading stage and at petrol stations on an emergency basis. The source presents the cap as an additional tool alongside the subsidies and states that it would have an exceptional character. Because neither the level of the cap nor its precise legal form has been disclosed, the practical reach of the measure cannot be evaluated from the information given. The temporary cap would seek to curb profiteering phenomena in the fuel market at both trading and station levels.
Frequently asked questions
When will the full package be announced?
Competent ministries are scheduled to present the detailed measures during the week of 21 September 2026.
Will the subsidy apply nationwide?
Yes, the price cap and allowance increase are designed as national measures covering all regions.
How does the 36% increase compare with last year?
Even with the new subsidy the expected price of 1.50 euros per litre would still be 36% above the 1.09-1.10 euros recorded on 15 October 2025.
Can households apply for the allowance now?
Applications remain closed until the exact eligibility rules and payment amounts are published next week.
Will the diesel subsidy affect petrol prices?
The diesel support is limited to that fuel category and does not extend to petrol.
