A new wave of rising fuel prices is expected in Greece: Refuelers warn that from the new week average price of 95 gasoline may exceed the psychological mark of €2 per liter.
The chairman of the Association of Fuel Owners and Sellers of Attica, Nikos Papageorgiou, warned about the new growth. According to him, the increase in prices at the wholesale level has already occurred and in the coming days will be transferred to retail prices at gas stations.
According to ΣΚΑΪthe price of gasoline at refineries rose from about 78 cents to 79-80 cents per liter, and diesel fuel increased in price by about 3 cents. This, according to Papageorgiou, should be reflected in the price tags of gas stations starting next week.
How much will gasoline cost?
According to the forecast of gas stations, the average price of 95-grade gasoline may be higher €2 per liter. Depending on the region, it will range from approximately €1.95 to €2.15.
Fuel will remain especially expensive on the islands. There, the price of 95 gasoline already exceeds €2 per liter, and transportation costs add about 14–15 cents per liter That is, the sea, the ferry, vacation and also a small tax on geography. Greek classic: if you want it beautiful, you have to pay painfully.
The island surcharge has long been a separate problem for consumers. Athens News previously wrote that on the Greek islands gasoline had already risen above €2 per liter, and in some areas the price was significantly higher than the mainland level. Rising fuel prices: gasoline on the islands is more than €2 per liter.
Why is fuel becoming more expensive again?
Papageorgiou attributes the rise in prices to several factors. The first is instability in international oil markets. Even after the announcement of truces in the Middle East, the market, he said, has not returned to normal: prices continue to fluctuate sharply.
The second factor is the crude oil supply logistics that have not been fully restored. According to the head of Attica’s tankers, tankers are not yet moving at a normal pace through critical shipping routes, and in some cases they require escort from warships.
This is directly related to the situation around the Strait of Hormuz. Athens News previously examined why even rumors of disruptions in Hormuz instantly hit the oil and fuel market in Europe. Is Hormuz open or closed? US and Iran have given conflicting messages.
The third factor is summer demand. There are more trips in July and August, especially in Southern European countries. Cars, ferries, tourists, car rentals, islands, highways – all this increases consumption. The market, of course, could not miss the moment when people are forced to travel. It’s not a charity, it just looks like a pump.
Oil may remain in the range of $72–80
According to Papageorgiou, oil price fluctuations will continue until at least September, and the barrel could move in the range of approximately $72–80. This means that there is no immediate relief for consumers yet.
This is exactly what is unpleasant for Greek drivers: the price of oil may drop a little and rise again, but at the gas station the consumer most often sees only the second part of this trick. When oil goes up in price, the price tag moves briskly. When it gets cheaper, the market suddenly remembers reserves, logistics, taxes and the difficult fate of humanity.
Athens News has already written that in the spring the fall in prices quickly gave way to a new rise, and hopes for relief before travel were short-lived. Fuel prices in Greece: decline replaced by rise.
Why is this especially painful for Greece?
The problem is not only the absolute price of gasoline. For Greek families, fuel is also expensive due to low purchasing power. Athens News previously wrote that Greece ranks last in EU in terms of fuel availability: with an average salary, residents of the country can buy about 530 liters of gasoline. Greece is last in the EU in terms of fuel availability.
This is the main blow: gasoline in Greece costs almost the same as in rich European countries, but incomes remain completely different. As a result, every trip by car turns into a calculation: how much does the road cost, how much will it cost to travel on the ferry, how much will it cost to stay, how much will it cost to buy groceries, and wouldn’t it be easier to stay at home, turn on the fan and watch the sea on the Internet? Romance of the 21st century, thanks to everyone involved.
This is especially noticeable during the holiday season. Athens News recently wrote that for many Greeks, a trip to the islands has become almost unaffordable: ferries and accommodation alone for a family can cost from €1,650 to almost €2,800, not including food, fuel and other expenses. A vacation is beyond your means: a trip to the islands has become an expensive pleasure.
What will happen to diesel
The rise isn’t just about gasoline. Diesel at the refinery level is already up about 3 cents, Papageorgiou said. This is important not only for private drivers, but also for the entire transport chain.
Diesel is found in trucks, delivery, logistics, agriculture, construction equipment and some commercial vehicles. When it becomes more expensive, it is quickly included in the cost of goods and services. So rising fuel prices are rarely just a problem for those who fill up the tank. In the end, everyone pays – even those who ride the bus and proudly think that they cheated the system.
Athens News previously noted that fuel is being pulled up by the broader price environment: transportation costs are being passed on to products, services and businesses. Greece is in a price trap: fuel is driving everything up.
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