Greece has opened the way for a heating oil subsidy that will apply to fuel placed on the domestic market from October 15, following an amendment submitted by the Ministries of National Economy and Finance, Environment and Energy, and Development.
The explanatory report accompanying the amendment says the measure aims to pass the full benefit of the subsidy on to final consumers. Refineries and fuel trading companies will act as intermediaries in transferring the support without retaining any financial benefit from it.
The amendment, submitted on Wednesday to a bill from the Ministry of Maritime Affairs and Insular Policy, extends the existing fuel subsidy scheme for diesel to also cover heating oil.
Under the new provision, the state budget will subsidise the cost of heating oil supplied to the domestic market from October 15 through October 31, 2026.
The amendment does not specify the exact amount of the subsidy. A joint ministerial decision by the ministers of National Economy and Finance, Environment and Energy, and Development will determine the amount before the October 15 start of the heating oil distribution period.
The amendment also allows the government to extend the subsidy period beyond October 31 and adjust the subsidy amounts through a decision by the Minister of National Economy and Finance.
The same decision will set out the procedure for granting the subsidy, the settlement mechanism and all other specific and technical conditions required to implement the measure.
How the subsidy will be calculated
The subsidy will be calculated once on the net value of sales invoices, before VAT. The invoices must have been issued by refineries, Category A petroleum trading companies that import heating oil, or licensed heating oil sellers that carry out imports.
The total subsidy will depend on the overall volume of fuel supplied to the domestic market for petrol stations, heating oil sellers and final consumers.
The cost to the state budget cannot yet be calculated. According to the accompanying report from the General Accounting Office of the State, the final cost will depend on two factors: the subsidy per litre, which the joint ministerial decision will determine, and the total quantity of heating oil supplied to the market during the period covered by the measure.
According to the General Accounting Office report, the state budget will cover the expenditure.
