Boyka Atanasova to FACT: Fine of up to 1 million euros in Greece if businesses have raised prices to "absorb a subsidy

What are the measures of the Greek government to deal with the sharp increase in fuel prices against the backdrop of tensions in the Middle East, as well as the broader economic policies to limit inflationary pressures? We are talking about both short-term anti-crisis actions and long-term challenges facing the economy, including the effect on households, businesses and the possibility of this model being implemented in other European countries. Journalist Boyka Atanasova, who has been living in Greece for many years, spoke to FACT on the topic.

- Ms. Atanasova, what are the most urgent measures that the Greek government is taking to limit the jump in gasoline and diesel prices due to the war in Iran?
- The Greek government has announced an emergency package of measures worth 300 million euros, aimed at cushioning the blow of the sharp increase in fuel prices as a result of geopolitical tensions in the Middle East.

A subsidy for diesel fuel is foreseen, with the state subsidizing 0.16 euros per liter excluding VAT directly to oil companies and wholesalers.

A Digital Fuel Card is being introduced, which is the main pillar and will compensate for the drastic increase in gasoline prices, which in many areas of Greece have already exceeded 2 euros/liter.
At the same time, the Greek government confirmed the granting of a one-off aid of 200 euros to taxi drivers to compensate for high maintenance and fuel costs.
To prevent a sharp increase in food prices due to expensive production resources, the government will support farmers. The state will cover 15% of the costs of invoices for purchase of artificial fertilizers in the months of April and May 2026. This subsidy is also combined with the lower excise duty on agricultural diesel to ensure that Greek production remains competitive despite the crisis.
Another key measure is the compensation for ferry tickets. In exchange for this aid, ferry companies undertake not to increase the prices of tickets for passengers and cars in April and May 2026.
In the context of the new 300 million euro package, the Greek government is taking measures against attempts at speculation. A profit margin cap is being introduced. The law prohibits companies (especially in the fuel, food and fertilizer sectors) from having a higher profit margin per unit of product than they had in December 2025.
If an inspection finds that a business has artificially inflated prices in order to “absorb“ the state subsidy, administrative fines range from 5 000 to 1,000,000 euros, depending on the company's turnover and the size of the infringement. In the case of a second infringement, the fine can be doubled, with the maximum threshold reaching 5,000,000 euros. The Ministry of Development publishes the names of all companies fined over 50,000 euros, which leads to a huge image risk.

- How effective is the direct fuel subsidy expected to be - for example, a reduction of around 0.20 euros per liter?
- The effectiveness of the direct fuel subsidy in Greece of 0.20 euros per liter is assessed as high in the short term in controlling inflation, but is accompanied by strict state control to ensure that the aid reaches consumers. Unlike in previous periods, the state imposed a temporary ceiling on the profit margin until June 2026. Wholesalers are limited to 5 cents above the refinery price, and gas stations - up to 12 cents above the delivery price. This ensures that the subsidy will not be "absorbed" by the supply chain.

- How will the so-called "Fuel Pass" refund work and which population groups will benefit the most?
- Any owner of a Greek passenger car or motorcycle that is in motion can receive this subsidy. For mainland Greece, the assistance is about 65 euros, residents of Crete, Rhodes and the smaller islands will receive up to 100 euros, due to the more expensive logistics there. The amount is loaded directly into a digital card installed on the phone and can be used at POS terminals at gas stations. This method is the most profitable, as the government adds a bonus of 15 euros to the basic subsidy. For citizens without a phone, the amount is transferred via IBAN, but it is 20% lower of the value of the digital card. For motorcycles, the funding is between 35 and 55 euros.
The subsidy is aimed at middle-income families. The access threshold is set at 30,000 euros of annual income, increasing by 3,000 euros for each child. This allows a large proportion of working families to benefit from the full amount of the aid.

- We are also seeing a broader package of measures – including a minimum wage increase. Is this an attempt to offset inflationary pressures beyond fuel?
- Yes, that’s right – the government in Athens no longer sees fuel prices as an isolated problem, but as part of a broader cost-of-living crisis. The increase in the minimum wage is the central pillar of this new package of measures and automatically triggers increases in 19 other social benefits.

Along with the wage increase, the government also announced a slight increase in the tax-free minimum for families with children.

This is key to ensuring that the increase in wages does not result in the worker moving into a higher tax bracket and actually receiving less net pay. Greece is moving from “emergency piecework” (such as petrol vouchers) to structural income support. This is an attempt to create a “buffer“ for households that will remain after the temporary fuel subsidies expire in the summer of 2026.

- What is the connection between the conflict in the Middle East and the sharp increase in fuel prices in Greece - is there a risk that prices will remain permanently above 2 euros per liter?
- The connection is direct and painful for the Greek market, as Greece is heavily dependent on crude oil imports, and its geographical proximity to the conflict zone makes it the first stop for price shocks. The Middle East controls key sea routes.

There is a real risk that prices will remain permanently above this psychological limit of 2 euros/liter.

If tankers continue to bypass Africa, delivery times are extended by 10-14 days, which keeps the price high. As summer approaches in Greece, demand is increasing. Oil is traded in dollars. If the conflict weakens the euro, Greek consumers will pay a “double price” - once for the oil itself and a second time because of the unfavorable exchange rate. Analysts in Athens believe that without de-escalation in the Middle East, the price of 2.10 - 2.25 euros per liter of 95-octane gasoline will be the “new normal” for Greek islands and highways in the upcoming season. This is precisely what forced the government to activate Fuel Pass 2026 to lower the effective price for locals below the critical threshold.

- Part of the package includes about 300 million euros in aid for households and businesses. Is this a sustainable solution or rather a temporary anti-crisis measure?
- The actions of the government in Athens show that the 300 million euro package is a typical temporary anti-crisis measure, not a long-term structural solution. The main goal is to prevent social tensions at the beginning of the tourist season. The government hopes that by the summer of 2026 the markets will calm down. However, if prices remain permanently above 2.20 euros, this amount will prove insufficient and it will be necessary to search for new funds or more painful measures such as reducing VAT (which would cost the budget billions). True sustainability will only come with the stabilization of international markets or a radical change in the country's energy mix.

- How does business react - especially the transport sector and tourism - of these measures and are they sufficient in their opinion?
- With restrained relief, but also with serious concerns that the measures are “too little, too late“ for the scale of inflationary pressure. According to the Hellenic Confederation of Commerce and Entrepreneurship, until the state imposes stricter control over the energy exchange and reduces VAT on basic goods, these 300 million euros will only have a temporary psychological effect.

- Can the Greek compensation model be implemented in other European countries, including Bulgaria, or is it specific to the local economy?
- The Greek compensation model is specifically adapted to the local economy, but its main elements are already being implemented in other countries, including Bulgaria. As of the end of March 2026, the differences in its implementation are dictated by the level of digitalization and the budgetary capabilities of each country. Large subsidies are difficult for countries with weaker budgets or those in the process of entering the eurozone (such as Bulgaria). Greece has some of the highest excise taxes in the EU, which allows it to "return" part of them in the form of subsidies. In Bulgaria, prices are lower precisely because of the minimum excise taxes, which limits the possibility of large tax discounts. The Greek model is being imposed as a specific crisis management tool, but its "portability" remains limited.

- Can Bulgarians living in Greece or tourists benefit from this package in some form?
- Some of these measures are also for Bulgarians, but it all depends on their residence status and tax registration in Greece. If they have a Greek tax number (AFM) and file a tax return in Greece, they are entitled to all benefits. Bulgarian tourists, as well as truck and bus carriers, can benefit from lower diesel prices at gas stations, which are for everyone regardless of nationality. Since there is no direct subsidy for gasoline (A-95) at the pump, but only through a digital card for locals, its price for Bulgarian tourists remains high (over 2 euros).

- What's next in Greece?
- Greece, together with Italy and Spain, is pushing for a pan-European ceiling on natural gas and oil prices. If this does not happen at the European level, the Greek government will probably announce a new, even larger package of measures in June, financed by the super-profits of energy companies.
-------------------------
Boyka Atanasova is a journalist and long-time correspondent for the newspaper “24 Chasa“ and Nova Television in Athens, Greece. She is the main source of information for the Bulgarian audience about political, economic and social events in our southern neighbor. She regularly collaborates with major Greek national television stations as a commentator. She is the recipient of the “Dignified Bulgarian“ award.