Fuel pass sequel under wraps

Fuel pass sequel under wraps

The emerging fiscal space that the May budget data has revealed opens the way for the Finance Ministry to announce an extension next week to support measures against fuel price hikes.

Sources say that the “fuel pass sequel,” as Alternate Minister Thodoros Skylakakis dubbed it, will offer higher subsidies for gasoline purchase to more people, and again last for three months.

The government is considering an increase in the subsidy to 40-60 euros from the €30-50 provided by Fuel Pass 1, this time with an emphasis on the islands. The annual income ceiling may rise to €45,000 net after taxes, which also applies to the electricity handout, in order for more consumers to receive the allowance.

On diesel, the government intends to continue with the same subsidy model applying today, but possibly increasing the amount above the current €0.12 per liter before value-added tax; with VAT the subsidy reaches about €0.15 cents/liter. The new diesel subsidy will be greater than €0.15 cents/liter.

Another measure being considered concerns the additional subsidy for state-subsidized coastal shipping routes.

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