With heating oil expected to go on sale at around €1.55 per litre and increased heating allowances of up to €1,500 available to eligible households, Prime Minister Kyriakos Mitsotakis outlined his government’s response to the energy crisis during a visit to Larissa, following the announcement of new support measures. He also sent a clear message to Brussels, calling for greater fiscal flexibility and criticising the European Union’s handling of the crisis and its consequences.

Mitsotakis placed particular emphasis on the government’s two-pronged intervention on heating costs, combining direct financial support for households with measures to keep heating oil prices down at the pump.

He said the government would maintain its subsidy of 20 cents per litre, with refineries contributing an additional 20 cents, bringing the total reduction to 40 cents per litre.

“We estimate that the starting price will be around €1.55,” Mitsotakis said, referring to heating oil, adding that this would be significantly lower than the price recorded at the end of the previous heating season in April.

Heating allowance of up to €1,500, reflecting regional needs

Mitsotakis also highlighted the expansion of financial assistance for households, with the heating allowance covering all energy sources.

“We are significantly increasing the heating allowance for every energy source. I want to emphasise that. Heating oil, electricity, natural gas. We are providing up to €1,500,” he said, adding that approximately 1.2 million households would benefit from the measure.

The Prime Minister described the scheme as socially fair, explaining that it takes account of the different climatic conditions and heating requirements across Greece. He cited mountainous Thessaly, Karditsa and Trikala as examples of areas with different heating needs from Crete and the Dodecanese islands.

Mitsotakis also set out the government’s priorities in responding to the energy crisis, placing household heating first, followed by diesel and then petrol.

“This is the best we can do under the present circumstances,” he said, stressing that the measures had been fully costed and would be reviewed in light of international developments.

The Prime Minister was accompanied by Evangelos Mytilineos, Chairman and Chief Executive Officer of Metlen, at the inauguration of the energy storage facility.

Criticism of Brussels: ‘Switching off the lights is not enough’

Turning from domestic measures to the European dimension of the crisis, Mitsotakis announced that he would raise the need for greater fiscal flexibility to support households and businesses at the forthcoming EU summit.

He explained that existing European fiscal rules impose specific spending ceilings, restricting governments’ ability to introduce additional support measures.

His criticism focused on the need for the European Union to go beyond recommendations to save energy, such as switching off lights or reducing petrol consumption.

“When circumstances change, policy responses must change too,” he stressed, expressing confidence that other European countries would adopt a similar position.

The Prime Minister said he would ask the European Commission to consider specific support measures, effectively calling for European fiscal policy to be adapted to the exceptional circumstances created by the crisis.

Warning over the rise of populism

Mitsotakis also addressed the broader political implications of the crisis, warning that a failure to respond effectively to mounting economic pressures could strengthen populist movements.

“At a time of political upheaval, when populist forces are gaining ground, we must demonstrate that we are capable of addressing not only long-term challenges, such as the green transition, but also of supporting European citizens when they need it most,” he said.