The average rate of gasoline per liter is about to climb over the psychological threshold of €2, with the price of diesel following close behind and, according to market estimates, coming a whisker away from €2, at €1.97-1.98/liter.
In electricity, the price of a megawatt-hour in the wholesale market for Monday climbed above €100 and reached €100.39, from €83.39 the previous day and the average level of €89.54 last week, while for Tuesday, after a daily jump close to 16%, it climbed to €116.2.
This upward trend in the wholesale electricity price is a result of the decline in the participation of RES and hydroelectric power in the electricity generation mix and not of increased natural gas prices, which will be passed on to the electricity market next month. That means that difficult times for electricity prices are yet to come. An increase in the price of natural gas by €10 per thermal MWh translates into €20/MWh for the price of electricity.
Against this backdrop, the government says it is ready to proceed with additional measures to support households and businesses for as long as the crisis lasts. Sources note that officials are proposing corrections to the fuel profit margin cap after the reactions it has caused in the sector and the advance warning of strike actions by fuel station owners: The ceiling imposed on fuel profit margins also incorporates VAT, essentially reducing them from 12 cents/liter to 9 cents/liter, the market says.
“I do not want to prejudge measures, but I confirm there is a will and a plan to support the Greek citizen,” Minister of Environment and Energy Stavros Papastavrou said on Monday.
The government also expects initiatives at a European level to limit the effects of the new energy crisis. “It is important that the EU be prepared for the possibility of a prolonged new crisis and effects on inflation,” Prime Minister Kyriakos Mitsotakis stressed, referring to Thursday’s EU summit with the agenda of seeking short- and long-term measures to cut energy costs.