Government mulling fuel price puzzle

Government mulling fuel price puzzle

The Greek government is expected to decide whether to impose a price cap on fuel prices on the islands at the start of next week.

According to information obtained by Kathimerini, the three competent ministries – of Economy, Energy and Island Policy – are considering adopting a proposal by the Regulatory Authority for Energy (RAE) to introduce a price cap, as well as their own idea of subsidizing the transportation of fuel from the mainland to the islands, among other solutions.

The reason the government is hesitant about adopting RAE’s proposal is because it is concerned the measure may work as a disincentive for the seamless supply of fuel to the islands or raise prices at gas stations where they are comparatively low.

“There is a concern that prices may rise artificially,” a senior official at the Economy Ministry told Kathimerini.

The government also wants to ensure that any possible subsidies for transporting fuel to the islands will be reflected in the retail price, rather than simply being pocketed by middlemen.

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