Greece Leads EU in Energy and Environmental Tax Revenue

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Greece recorded the highest share of environmental tax revenue in the European Union in 2024, as fuel prices in the country climbed above €2.20 per litre and energy costs continued to pressure households and businesses.

According to the European Commission’s Report on Public Finances in EMU, prepared by its Directorate-General for Economic and Financial Affairs, environmental tax revenue in Greece amounted to around 3.7% of GDP in 2024. That figure ranked first among EU member states and stood well above the EU average of around 2.1% of GDP.

Energy taxes accounted for the largest share of the revenue, while taxes on transport, pollution and natural resources contributed smaller amounts.

Fuel prices remain above €2.20

The latest figures from the Ministry of Development’s Liquid Fuel Price Observatory show the nationwide average price of unleaded petrol at €2.201 per litre and diesel at €2.219 per litre.

The highest prices continue to affect Greece’s islands.

The Cyclades have the country’s most expensive unleaded petrol, with an average price of €2.428 per litre, followed by the Dodecanese at €2.323.

The Cyclades also record the highest diesel prices, at €2.415 per litre, while the Dodecanese ranks second at €2.302.

For diesel, government support and refinery discounts currently provide a combined reduction of up to 15 cents per litre.

The high fuel costs affect daily motorists as well as small and medium-sized businesses, which face higher operating expenses. Concerns have also emerged over a possible chain of price increases on supermarket shelves from October.

Government prepares further fuel support

Amid continued volatility in international markets, Prime Minister Kyriakos Mitsotakis is expected to announce the government’s next intervention for diesel at Wednesday’s Cabinet meeting.

The government is expected to maintain the fuel-pump subsidy at 10 cents per litre. Together with refinery discounts, the total relief would reach 15 cents per litre.

The measure will apply during the first half of October. The government has decided not to set support levels for the entire month in advance, leaving room to adjust the measures according to market prices.

A second round of announcements is scheduled for October 14, 2026, one day before heating oil sales begin. The government will then finalise both diesel support for the remainder of October and the heating support package.

Heating oil prices and subsidy scenarios

International oil prices will determine the scale of the government’s next measures.

By October 15, when heating oil sales begin, the government will also have a clearer picture of commercial discounts offered by fuel companies and refineries.

Any such discounts would come on top of government support and help determine the final price consumers pay at the pump.

The government aims to see heating oil start below €1.75 per litre, lower than the price at the end of the previous season. Officials are also considering a lower range of around €1.60-€1.65 per litre.

The final level of support, however, will depend on international oil prices shortly before heating oil sales begin.

One scenario under consideration would avoid fixing the pump subsidy for the entire winter season. Instead, the government could adjust it monthly or even every two weeks, depending on market conditions.

This approach would allow the government to use the fiscal resources allocated to support households against high energy costs according to how prices develop.

Heating allowance to increase

The government also plans to increase the heating allowance, which currently reaches around 1.2 million households and costs the state €173 million.

The plan provides for a horizontal increase in the benefit without changing the income criteria or the number of eligible households.

The allowance will continue to vary according to local weather conditions, directing greater support towards households facing higher heating needs.

EU countries respond to energy costs

With energy prices remaining high and European gas storage facilities less full than usual, EU energy ministers are meeting in Dublin to discuss measures to address the renewed energy crisis.

Greece will be represented by Deputy Minister of Environment and Energy Nikos Tsafos.

The European Commission is again proposing measures focused mainly on energy conservation and reducing demand.

Across Europe, governments are using tax cuts, subsidies, price caps and emergency support to limit the impact of high fuel prices.

Germany will cut its energy tax on petrol and diesel by 14 cents per litre from October 1, bringing the total relief at the pump to around 17 cents.

France has allocated a €450 million support package, while Spain has reduced its fuel discount to five cents per litre, with the option of restoring it to 20 cents if price increases intensify.

Italy is extending its reduction in the special fuel tax, at a cost of more than €2.6 billion.

Portugal, Cyprus and the Netherlands are also maintaining tax relief measures and reductions in fuel-related taxes.

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