The Middle East conflict is increasingly showing up at Greek gas stations, where gasoline and diesel prices remain above €2.20 a liter, squeezing households and businesses and putting pressure on Athens to provide more financial relief.
The nationwide average price for regular 95-octane gasoline stands at €2.206 a liter, while premium 100-octane costs €2.453. Diesel is almost as expensive as regular gasoline, at €2.203 a liter, while liquefied petroleum gas sells for €1.054.
The increases illustrate how quickly the global energy shock has reached consumers. During eight months of conflict in the Middle East, crude-oil prices have risen 43% and refined products 83%. Greek gasoline prices have climbed 27%, while diesel has jumped 41%.
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That is particularly painful in Greece, where cars remain essential outside major urban centers and higher transportation costs can feed through to food, tourism and other parts of the economy.
Athens is now seeking greater fiscal flexibility from the European Union to spend an additional €700 million on emergency energy measures. Greece argues that higher value-added-tax receipts generated by rising fuel prices should provide some room to offset the burden on consumers. Italy is supporting the push.
The winter outlook offers little relief. European benchmark natural-gas prices at the TTF hub have more than doubled from precrisis levels and remain above €70 a megawatt-hour, adding pressure to electricity prices.
Greece has sufficient fuel and gas supplies, but availability is no longer the principal concern. Price is. Securing energy cargoes from more distant suppliers increases shipping costs and freight rates, with diesel particularly exposed.
International attempts to cool the market have so far produced limited results. A Group of Seven decision to release as many as 100 million barrels from strategic reserves failed to trigger a sustained decline in prices. Meanwhile, major OPEC+ producers agreed to leave November production targets unchanged, as oil futures again approach $100 a barrel.
