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Тhe price of the regular unleaded gasoline in some of the most popular tourist destinations in Greece reached € 1.70 per litre. The situation in the rest of the central country roads is not much different as prices often exceed € 1.65 per litre. The country is the European champion in the category of the most expensive average gasoline price of € 1.50 per litre for several days.

But what caused this? According to fuel traders the reason is the threefold increase in the excise duty and the double VAT increase from February 8. This means that € 0.95 from the price per litre is to cover taxes. Further on and because we live in a free market conditions, each trader determines the selling prices at his discretion.  

In many cases the difference between the prices of separate gas stations is up to € 0.35 per litre. According to the former president of the Federation of fuel retailers in Greece Dimitris Makrivelios “fuels market in Greece is not functioning properly. It is beyond the rules of good competition. These large differences in the prices indicate improper competition.” He said the government should take measures not to continue the current practice of pulling conclusions without taking concrete measures to improve conditions on the fuel market.

The current president of the federation of fuel retailers Michalis Kyusis shares the same opinion, saying it is normal gasoline prices on the islands to be higher because of transport costs. “With regard to highways and major roads, the gas stations located there are owned by oil companies and the price of gasoline is further exacerbated by their obligation to give 5% of the turnover to the state fund for road construction. This is a long standing practice that should be terminated,”said Mr Kyusis.

At the same time, a proposal of the recent president of the fuel retailers in Greece attracted great media interest. Dimitris Makrivelios offered the country to import unleaded gasoline from Bulgaria. Thus, in his opinion, its price will fall by more than 50% if, of course, the government allows such imports. And when it comes to imports from a European Union country, there will be no additional duty on the price of gasoline according to Dimitris Makrivelios; the trader will only pay sales tax.

As an argument to his proposal Makrivelios added that many stations in northern Greece are closed because the locals go to Bulgaria and Macedonia to fuel their cars and even fill tubes to have enough gasoline for the week. “The country suffers losses in this way,” he said.

The management of the federation of fuel retailers however opposes this proposal because “after being imported the gasoline will be taxed under the Greek law. So, its price will reach that value again. Otherwise, it is smuggling.” On the north, “the problem from Ormenio to Kastoria is very serious, the consumer demand is very small and gas stations are being closed  almost every day. The situation was exacerbated especially after February 8, when prices jumped sharply to € 0.44 per litre.” The federation offers a specific tax regime to be introduced in the areas near the border to facilitate and help the traders there.