Fuel prices across the Athens metropolitan area have moved above €2 per liter ($2,31), intensifying pressure on consumers as Greece’s fuel margin cap comes under growing criticism from industry operators.
According to the competent Price Observatory, unleaded gasoline has been selling for between €2.001 ($2,31) and €2.158 ($2,49) per liter in several Athens suburbs.
The increase comes as the Greek government faces mounting backlash over its reintroduced cap on profit margins in fuel sales, a measure retailers say does little to reduce pump prices while squeezing already narrow earnings.
Athens fuel prices cross a symbolic threshold
The move above €2 per liter ($2,31) marks a notable escalation in the Greek fuel market, especially in the capital region where demand remains high and price increases are felt immediately by households and businesses.
Industry executives argue that the margin cap was never designed to significantly restrain retail prices. The measure applies to the gross profit margins of oil trading companies and fuel retailers, which together account for only about 10% of the final pump price.
They note that the remaining 90% is shaped by other factors. Refinery costs represent roughly 30% of the final price, while excise duty and VAT together make up nearly 60%.
War-driven volatility pushes costs higher
Since the outbreak of the war, average fuel prices in Greece have risen sharply. Unleaded gasoline has increased by €0.189 ($0,20) per liter to €1.94 ($2,24), from €1.751 ($2,02) before the conflict. Diesel has climbed by €0.346 ($0,39) per liter to €1.916 ($2,21), from €1.57 ($1,81).
The latest increases have been tied to rising geopolitical tension and renewed instability in global energy markets.
Petroleum industry executives have described the current environment as the most severe oil market crisis in recent years, pointing to uncertainty over tanker transit through the Strait of Hormuz.
Margin cap fuels industry backlash
Tensions between the government and fuel station owners have intensified following the reintroduction of the profit margin cap, which was brought back partly in response to geopolitical tensions and the war in Iran.
The government has set the maximum gross margin at 12 cents per liter ($0,13). Retailers say that because the figure includes VAT (Value Added Tax), their actual profit falls to about 9.5 cents ($1,10) per liter.
Industry representatives argue that such a narrow margin leaves little space to cover day-to-day operating costs, raising concerns that the policy is pushing the sector toward financial strain.