Three weeks after the military assault against Iran began on February 28, the Greek fuel market is experiencing unprecedented price increases. Refineries announced a 50% increase in the refinery price of unleaded gasoline and a 75% increase in diesel, leading the country to confront the steepest rise in prices since the war in Ukraine. The cost of a barrel of oil began the fourth week of the war at $112, while international markets sought ways to contain the price rises.

In Greece, for the first time, the wholesale price of diesel exceeded that of unleaded gasoline: rising from €1.26 to €1.56 for diesel, and from €1.09 to €1.53 for unleaded gasoline. This reflects an increase of 27 cents per liter for unleaded gas and 47 cents for diesel. The development is particularly concerning as diesel is primarily used by commercial vehicles, and rising costs affect hundreds of products and services. Retail prices may surge further, causing additional strain on consumers and the overall economy.

As the situation develops, consumers could face a severe impact in their daily expenses, especially in a country already reeling from the economic repercussions of past crises and the ongoing effects of the war in Ukraine. The reliance on diesel for transportation and logistics means that this price increase could cascade through the economy, influencing inflation rates and consumer spending behavior across Greece. Policymakers may need to intervene to ease these pressures on the population, considering the socio-economic implications of higher fuel prices.