Why is the Greek government intervening on heating oil prices?
Without intervention, heating oil could reach nearly 2 euros per litre when sales begin on 15 October. Prime Minister Kyriakos Mitsotakis has signalled a target below 1.75 euros, with planning documents aiming for a final price between 1.50 and 1.60 euros per litre. Achieving this requires removing 40 to 50 cents per litre through a combination of state subsidy and refinery discounts. The 2025 opening price stood at 1.09-1.10 euros per litre. A 2026 price near 1.50 euros after subsidies would still represent a 36 percent increase year-on-year. For a household purchasing 1,000 litres, the cost would rise from approximately 1,100 euros to between 1,500 and 1,600 euros. The fiscal cost to the state budget will depend significantly on the level of participation agreed with the refineries. The plan operates on three fronts: direct subsidy at the pump involving both state and refineries, a margin cap at retail level, and an across-the-board rise in the heating allowance paid only to existing recipients. Talks with refineries on their contribution and the precise margin cap remain the two open items delaying final announcement beyond the originally expected Monday.
How will the pump subsidy be structured?
The first element involves direct price reduction at the pump. The government seeks to split the cost between the state budget and refineries. The size of the refinery discount determines the required fiscal outlay: greater refinery participation lowers the budget burden needed to reach the target price. Final announcements are expected within the coming week rather than on Monday, pending agreements with refineries on their contribution. The exact burden on the state budget depends heavily on how much the refineries agree to contribute. Talks with the refineries remain the key outstanding item before the package can be finalised. The intervention therefore combines public funds with private-sector discounts at the source to bring the consumer price into the 1.50-1.60 euro range.
What cap is planned for fuel retailer margins?
The second measure targets retailer profit margins. The government intends to impose a cap so that state subsidies and refinery discounts are not absorbed before reaching consumers. Petrol station operators have strongly opposed the proposal. The approach combines an origin price cut with downstream margin controls to ensure the subsidy reaches households. Without the cap, the discounts negotiated at the refinery and state level could be eroded before the fuel reaches the pump. This second parameter of the plan is therefore considered essential to the overall effectiveness of the intervention. The cap is designed to protect the transmission of both the state subsidy and the refinery discount all the way to the final consumer.
Who receives the heating allowance and why will criteria stay the same?
The third component is an across-the-board increase in the heating allowance for existing recipients. Approximately 1.17 million households currently qualify, covering oil, natural gas, electricity and firewood. Around 600,000 use heating oil, 175,000 natural gas, 320,000 electricity and 75,000 firewood. Income limits remain fixed: 16,000 euros for single persons, 24,000 euros for couples plus 5,000 euros per child, and 29,000 euros for single-parent households plus 5,000 euros per additional child. Asset limits are 200,000 euros for singles and 260,000 euros for couples or single parents, plus 40,000 euros per dependent child. Business revenue cannot exceed 80,000 euros gross. The allowance ranges from 100 to 800 euros, reaching up to 1,200 euros in high-need areas. Recipients may claim only one heating type and must purchase at least twice the allowance value. No change to these thresholds is planned, so the additional fiscal support will be directed solely to increasing the amounts paid to the existing group of beneficiaries. The policy therefore deepens support inside the current perimeter rather than widening it.
Which households remain outside the support net?
Keeping criteria unchanged excludes households above current thresholds. A couple with two children earning 40,000 euros exceeds the 34,000-euro limit yet faces the same price increase as qualifying households. The policy channels additional support only to existing recipients rather than widening coverage. This leaves a gap for households that already struggle with energy costs but sit just above the income or asset lines and receive no extra help. The decision not to adjust the limits therefore concentrates the extra resources on those already inside the system while leaving a segment of households exposed to the full price rise. Households in this position will pay the same higher price without receiving any offsetting increase in the allowance.
Frequently asked questions
When will the heating oil subsidy package be announced?
Announcements are expected within the next week after refinery talks conclude, not on the originally indicated Monday.
Will the number of heating allowance recipients increase?
No. Eligibility criteria will stay the same; only the payment amount will rise for the existing 1.17 million beneficiaries.
What price target has the government set for heating oil?
The aim is a final consumer price of 1.50 to 1.60 euros per litre after subsidies, compared with an unassisted level near 2 euros.
How much more will households pay compared with 2025?
Even after subsidies, the same 1,000 litres will cost 400 to 500 euros more than the 1,100 euros paid at the 2025 opening price.
Which heating sources are covered by the allowance?
The allowance covers heating oil, natural gas, electricity, firewood, pellets, district heating and lamp oil, subject to the single-source rule.
