Greece is preparing fuel market measures if oil reaches $100 a barrel, as Middle East tensions push diesel and gasoline prices higher. Image: Oil factories in Mesaieed Industrial Area, Qatar. Credit: Wikimedia Commons / Alex Sergeev CC BY 3.0
Greece is preparing to introduce fuel measures if global oil prices reach $100 a barrel, as the conflict in the Middle East begins to push up costs at the pump.
In an interview with a Greek broadcaster, on Sunday, March 8, Greek Energy Minister Stavros Papastavrou said rising regional tensions would affect fuel prices in Greece and identified $100 a barrel for Brent crude as the threshold for government action.
His remarks come as prices at the pump begin to rise across the country and officials monitor the potential impact on households and the broader economy. Deputy Energy Minister Nikos Tsafos issued a similar warning the previous week.
Greece sets $100 threshold for intervention with fuel measures
Papastavrou said Greece cannot remain unaffected by developments in the Middle East when it comes to energy costs. He made clear that the government has set a defined threshold for action, saying measures would be activated if Brent climbs above $100 a barrel.
He added that the government has previous experience in dealing with energy market shocks, pointing to the support measures introduced during the COVID-19 pandemic and the energy crisis that followed Russia’s invasion of Ukraine.
If needed, he said, the government will move to support household incomes, with final decisions to be taken by Prime Minister Kyriakos Mitsotakis.
Fuel measures under consideration
According to information reported in the Greek press, the options under discussion include imposing a cap on profit margins in fuel trading.
Papastavrou also said Greece could raise the issue at the European Union summit later this month, potentially seeking action at the EU level if market pressures intensify. The minister also sought to reassure consumers over supply security. After meeting refinery operators last week, he said Greece has oil reserves exceeding 90 days.
He added that refineries could also reduce exports if necessary to protect the domestic market. According to Papastavrou, a large share of Greek refinery exports is not tied to contracts, allowing room for intervention to strengthen domestic supply.
Diesel prices rise as conflict deepens
Fuel prices in Greece have already started moving higher during the first week of the Middle East conflict, according to the government’s Fuel Price Observatory.
Diesel recorded the sharpest increase. By Friday, March 6, the national average price had reached €1.743 ($2,02) per liter, up from €1.565 ($1,81) per liter on February 27, before the conflict began. That represents an increase of €0.178 ($0.19) per liter.
Over the same period, the average price of unleaded gasoline rose to €1.82 ($2.11) per liter from €1.751 ($2.03) per liter, an increase of €0.069 per liter. The rise has narrowed the gap between diesel and gasoline prices.
At the start of the week, Brent crude was trading at $93.04 per barrel, moving closer to the level Greek officials say would trigger intervention.
