Rising fuel costs driven by tensions in the Middle East are having uneven effects on Greece’s fuel market, with motorists reducing petrol consumption while diesel demand remains largely stable due to strong industrial and transport needs.
Government data show that higher prices have encouraged households to cut back on non-essential travel, particularly as gasoline prices have stayed above €2 per liter. This trend became evident in March and April and appears to have intensified further in May, according to preliminary estimates from fuel distributors.
Petrol consumption reached 343,086 tons in March and April, marking a 2.2% decline compared with the same period last year. Early industry estimates indicate the drop widened to around 5% in May, reflecting the ongoing impact of elevated fuel prices on consumer behavior.
In contrast, diesel consumption has remained broadly stable. Usage during the first two months after the outbreak of the conflict stood at 468,968 tons, close to last year’s levels. Analysts attribute this resilience to diesel’s critical role in freight transport, agriculture, and industrial activity, where demand is less sensitive to price increases.
Concerned about potential inflationary pressures from rising energy costs, the Greek government has extended its diesel support program. Prime Minister Kyriakos Mitsotakis announced that the subsidy will remain in place through June, offering a discount of €0.15 per liter. According to the government, the measure keeps diesel prices roughly €0.3 per liter below levels recorded in March.
Despite the subsidy, diesel prices have still increased significantly since the start of the Middle East conflict. The surge has been linked to disruptions in global energy markets following the closure of the Strait of Hormuz, a key route for oil shipments.
While diesel support measures have helped cushion businesses and limit broader inflationary spillovers, petrol consumers have largely responded by reducing travel and overall fuel consumption as prices continue to rise.
