Greece's average nationwide diesel price stood at 2.07 euros per litre at the start of August, after climbing by around 39 cents per litre in July despite a state subsidy that was already in effect, market data showed.
Diesel is widely used in Greece for freight transport, agriculture and, during the winter months, heating, which makes its price a closely watched indicator for households and businesses alike.
Whether the subsidy will translate into a full reduction at the pump depends on how international oil prices move in the coming days. Fuel deliveries to petrol stations do not happen at the same time, since businesses hold different reserves in their tanks, and this has already produced significant price differences from one station to another.
The goal is for the average retail price of diesel to fall below 2 euros per litre, at a time when international oil prices are recording a significant drop.
Brent crude falls on hopes of Hormuz talks
Brent crude, the international benchmark used to price most of the world's oil, was trading below 84 dollars a barrel, down more than 5%. The fall came after United States President Donald Trump announced the resumption of peace talks that include the possible reopening of the Strait of Hormuz, a critical energy route between Iran and Oman through which a large share of the world's seaborne oil exports pass.
International oil prices recorded their largest monthly rise since the start of the war last month, exceeding 20%.
The renewed drop in international prices is creating expectations that the 10-cent-per-litre subsidy on diesel, which took effect from the 1st of the month, will become more noticeable to consumers.
Unleaded petrol price picture
Unleaded petrol began the month at an average price of 2.02 euros per litre, down from 2.06 euros on the last day of July.
The wholesale market expects further de-escalation in the price of unleaded petrol over the coming days, while conversely forecasting upward pressure on diesel.
Market sources attributed the expected rise in diesel mainly to strong international demand for the product, which is directly affected by the tension and uncertainty in the Middle East.
The coming period will determine the real impact of the subsidy at the pump, with the trajectory of prices remaining directly linked to developments in the Persian Gulf, the region that includes the Strait of Hormuz and is a major source of the world's crude oil supply.
