Mitsotakis: Announced fuel pass, subsidy on diesel fuel and intervention for ferry tickets

A package of 4 targeted measures for the period April–May, worth €300 million, was announced today by Prime Minister Kyriakos Mitsotakis.

1. We subsidize diesel fuel in the distribution network by 16 cents/liter – benefit in the final price (including VAT) at 20 cents/liter.
2. We provide a Digital Fuel Card to support households against rising gasoline prices – it will be used at fuel stations, public transport, and taxis.
   Average support at 36 cents/liter – with an average monthly consumption of 70 liters, €50 every two months in mainland Greece and €60 in the islands.
3. To relieve farmers from sudden increases in fertilizer prices, we subsidize 15% of the value of their purchase receipts.
4. We introduce compensation for ferry companies linked to mandatory ticket discounts, to keep prices at last year’s levels. The cost of the initiative will be covered by public funds and by taxing profits from online “casino-type” gambling operators, securing €100 million.

“These are measures allowed by prudent fiscal management, they strengthen social defenses in turbulent times and do not endanger what we have achieved,” stresses the prime minister, who adds, “We are keeping reserves in case the global economic situation worsens significantly.”

“The government stands and will continue to stand by every Greek woman and every Greek man,” concluded Kyriakos Mitsotakis.

From the first moment of the conflict in Iran, I declared that the government would take initiatives to erect a “defense” against the consequences of the new major crisis. We immediately acted in the geopolitical field, protecting Cyprus, stability, and energy security in the region.

At the same time, we must support households and businesses against international economic instability. Especially in the fuel sector, since fuel is linked to production costs, product price increases, and the daily life of citizens.

You know that Greece is already leading in shaping a unified European response. Until then, the government is determined to act unilaterally at the national level, always within our fiscal capabilities.
Thus, today I announce a package of four targeted measures, which will apply for the months of April and May. The size of the program is around €300 million, while the support provided reaches almost the entire population.

First, to limit the negative impact of the global rise in oil prices on the supply chain, goods transportation, and agricultural production, we intervene in the cost of diesel fuel. The state will subsidize it in the distribution network by 16 cents per liter, meaning the benefit for consumers and professionals in the final price – including VAT – will amount to 20 cents per liter. I repeat: our goal here is that increases in production costs do not translate into product prices.

Second, to strengthen households against rising gasoline prices, special support is provided in the form of a Digital Fuel Card. This can be used at fuel stations, in public transport, and in taxis. Average support is estimated at 36 cents per liter. That is, with an average monthly consumption of 70 liters, the measure translates to €50 every two months for mainland Greece and €60 for the islands. Moreover, the criteria for issuing this card will be broadened to cover roughly 3 out of 4 million vehicle owners.

Third, we also promote specific interventions to relieve farmers from sharp increases in fertilizer prices. Thus, the state will subsidize 15% of the value of their purchase receipts.

Fourth, as a defense against the effects of high maritime fuel prices, a special compensation is established for ferry companies. This compensation, however, will be linked to mandatory ticket discounts. Our goal is to keep ferry ticket prices close to last year’s levels.

And one more thing: the cost of this initiative should be covered not only by public funds but also by sectors with increased profitability, while having a smaller social footprint.

Thus, going forward, taxation of profits from online “casino-type” gambling operators will be modified to secure €100 million. A fair intervention, in my view, which will be explained shortly, along with all program details, by the responsible ministers.

What I would like to emphasize is that the above is made possible thanks to the benefits brought by the positive trajectory of the economy and prudent fiscal management. These are measures that strengthen social “defenses” in turbulent times. They do not, however, weaken the essence of this effort nor endanger what we have achieved.

And because no one knows how long this war will last, we obviously keep reserves in case the global economic situation worsens significantly.

Our message, therefore, is one: the government stands and will continue to stand by every Greek woman and every Greek man, as it has done in every difficult moment until now. Meanwhile, our country will once again overcome all storms caused by events beyond its borders, having daily weapons in unity and social cohesion. In uncertain times, the country needs a steady compass to guide its orientation.