Filenews 21 February 2024 - by Eleftheria Paizanou
Month by month, it seems, the Government will take decisions regarding the subsidy of electricity and the reduction of the consumption tax on fuel.
Earlier today, the Council of Ministers decided to extend the graduated subsidy for electricity costs from March 1 to April 30, 2024, for residential, commercial and industrial consumers, while for vulnerable consumers the subsidy will cover 100% of the electricity price increase imposed in June 2022.
The subsidy will be for two months, as the implemented measure expires on February 29. It is worth noting that electricity prices are currently at lower levels than the first time the measure was implemented. However, due to market distortions in the energy sector as well as the effects caused by exogenous factors, the subsidy measure is extended for two months.
For 28 days the extension of the reduction in fuel
In addition, the measure of reducing excise duty on motor fuels will continue for another 28 days. Specifically, the measure that is now in force will be completed on March 3 and with today's decision is extended until March 31.
The reason why this measure will only be implemented for such a short period of time is due to the fact that tabletop exercises conducted by technocrats have shown that motor fuel prices are much lower than when the measure was first implemented in 2022. It is recalled that the reduction in excise duty will continue to be 8.33 cents per liter.
Economists speaking to "F" estimate that this measure was extended for only one month for the government to monitor how prices are formed, so as to differentiate, if necessary, the decision. At the same time, they note that in this way the measure is somewhat more targeted, as it will be applied when prices rise. It is recalled that the European Commission had made suggestions to the Republic to avoid horizontal measures and to apply targeted measures.
