The government’s measures to tackle the energy crisis are being implemented, following the ratification by law of the Legislative Content Act yesterday in Parliament. Immediately the benefit is 20 cents a litre for all those who buy diesel fuel without having to apply. In total, by May it could exceed 36 or even 60 cents, as the process for granting an additional subsidy for the purchase of fuel directly (fuel pass) to 3.1 million individual owners is also entering the final stretch in the coming days.
Who will see a cut from today
Specifically, the first measure to be activated at dawn today is a 16-cent subsidy from the state for every litre of diesel oil that comes out of refineries and is available for sale to consumers. Together with VAT (24% or 17% on the Aegean islands), the final disposal price is immediately reduced by 19-20 cents per litre, compared to the price without subsidy.
The discount on diesel fuel is applicable from 1 to 30 April (with a possible extension if necessary in May) and applies horizontally to all consumers (households or businesses) without distinction. The reduction will be seen in the next few hours or days, once every petrol station is supplied with diesel at a lower price.
The benefit to the final purchaser is essentially double the maximum benefit he would have received if, instead of this subsidy, there was a direct reduction in the excise duty.
In practice, if from 41 cents per litre of diesel currently in force, the RRP was reduced to 33 cents (which is the minimum amount of specific duty allowed for liquid fuels in the EU), then the price at the pump would not fall more than 9 or 10 cents per litre (with an 8 cent reduction in RRP together with 24% or 17% VAT as appropriate) instead of the 19-20 cents per litre currently applicable.
Fuel subsidy pass: who will get it and when
In the second phase, the second support measure for fuel purchase subsidy for those beneficiaries (households) who meet the income criteria set out in the NAP is coming. The Ministry of Finance aims to open the application platform before the middle of the month.
The Fuel Pass fuel card will be worth €25-60, depending on whether the subsidy is for a motorcycle or car owner. It will be given to all private vehicles, regardless of whether they use unleaded or diesel. So owners of diesel vehicles will receive a “double subsidy” (and 20 cents at the pump directly and a Fuel Pass for April-May) since diesel has increased more than unleaded. Around 10% of IX vehicles use diesel while 90% use unleaded petrol.
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For any owner who has an average consumption of 70 litres of petrol for a car, it has been calculated – using official data from Greek Statistics – that a subsidy of 50 euros translates into a subsidy of about 36 cents per litre for mainland Greece, while 60 euros translates into a subsidy of 43 cents per litre for island Greece. This subsidy currently corresponds to almost all of the observed increase in unleaded.
The measure applies to households (natural persons without excluding freelancers) who are tax residents of Greece, provided that:
a) there is a vehicle in circulation registered in their name – with paid fees and insurance – and
Especially for single parents with 1 child, the income limit is 39,000 euros, plus 5,000 euros for each additional child.
Based on these criteria, 3.1 out of 3.98 million wheeled vehicle owners in the country (3.7 million car owners and another 248,000 motorcycle owners who do not own a car) are considered potential beneficiaries. That is, almost 8 out of 10 or 78% are covered.
The subsidy will be given in the form of an electronic digital card on the mobile phone, which can be used at petrol stations. The difference with the older Fuel Pass, however, is that it can be used on public transport and in taxis.
Applications will also be accepted at the KEPs when the process opens. While for those citizens who are unable to use a suitable smartphone (contactless NFC enabled) to use the digital card, the amount will be deposited in a bank account of their choice.
The final amount for the April-May two months varies: a lower amount will be given to those who choose to deposit into an account (IBAN) and a higher amount if they receive a digital card. The reason is that those who opt for “card instead of cash” will not be able to spend the amount they receive anywhere else, except for fuel, ticket and taxi payments. In addition, if they do not use the credit by July 31, any remaining balance on the intangible card, if any, will be cancelled and returned to the government.
With this in mind, for beneficiaries who choose to use a digital card, the amount of financial support will be increased by 10 euros. The subsidy for a car in a continental area will be EUR 50 for a two-month period with a digital card and EUR 40 without a card. For citizens whose main residence is in an island region, the subsidy will be €60 with a digital card and €50 without a card. For motorcycle owners, the subsidy amounts to €30 using a digital card, €25 without a card on the mainland and €35 using a digital card and €30 without a card in an island region.
