Greece: European champion in fuel price hikes

Greece has the most expensive unleaded gasoline in the Eurozone and one of the highest diesel prices in the entire Eurozone, while it is in the top positions in liquid fuel prices in the entire European Union.

According to data from the European Commission, between October 31 and November 7, a significant increase in fuel prices, above the European average, was recorded in Greece, with the average increase being 0.057 euros per liter compared to October 31, when in the whole of the E.U. 27 the average increase was €0.013 per litre.

The high prices are also attributed to the high taxes imposed in our country. This trend of fuel taxation appears to be holding steady, with drivers being asked to contribute a large share of public coffers despite the fact that in other eurozone countries other solutions have been found – at least as far as the prices at the pump show for unleaded and diesel. In fact, in a large part of the Eurozone, incomes are higher than those in Greece.

Based on the latest consolidated data from the European Commission and Eurostat for the whole of Europe, concerning November 7, 2022, the average price of lead-freegasoline in Greece was 2.094 euros per liter, being the highest in the entire euro zone and the second highest across the EU after Denmark. Greece is also in the top positions in diesel, as in the entire EU it is behind only Sweden, Denmark and Finland, countries with very high, proportional, incomes.

Now the prices have risen even more and based on the data for November 13 from the Price Observatory, they stand at 2.110 euros for simple unleaded, at 2.277 euros for 100 octane unleaded and at 2.081 euros per liter for diesel. Increases were also recorded in Europe with market players citing appreciations in international stock prices.

How is the final price calculated at the pump?

In practice, the final retail price is formed by the refinery price by 40.72%, by taxes by 54.09%, and by the estimated margins of trading companies, liquid fuel carriers and gas stations by 5.18%, the Observatory reports Prices.

In liquid fuels, VAT amounts to 24%. The rate of Special Consumption Tax  on petrol and diesel is set at 700 and 410 euros per 1,000 liters respectively. The VAT rate on LPG is 430 euros per 1,000 kg. For heating oil and for the time period from 15/10 of each year until 30/4 of the following year, a VAT rate of 280 euros per 1,000 liters is set.

Example for unleaded price configuration

Based on an example given by the Price Observatory for the formation of the unleaded price on November 4, which is the most recent data, the final amount at the pump is formed as follows: The refinery price of 95 octane unleaded gasoline for 03/11/ 2022 was set at 0.8418 euros per liter. Taxes, fees and other charges correspond to 1.1181 euros per liter. Thus, the average retail price of unleaded 95 octane gasoline for 04/11/2022 was 2.067 euros per liter. The estimated margin of petrol stations and trading companies is calculated at an average of 10.72 cents per litre.