Fuels primarily maintain inflation and compose an environment in which the fear of price increases refers to the effects of the 2023 energy crisis, due to the price increases in diesel, gasoline, but also in a wide range of food and services.
Data released by the Statistical Service show that the consumer price index rose 2.6% year-on-year in May and its course will largely depend on the duration of the conflict in the Middle East, which remains a key source of uncertainty and pushes up and down the price of Brent oil.
The increase in diesel rose 31.2%, compared to an 11.7% decline recorded last year. If we go back even further, in May 2024, compared to 2023, the price of diesel had increased by 11.75% and in 2023 compared to 2022 the decline of the index was 20.7%. However, consumers saw the largest increase (44.9%) in May 2022, compared to 2021.
As a result, geopolitical instability has also affected the price of gasoline with consumers feeling the high prices, since the price index in this item increased by 17.8% in May on an annual basis, while in 2025 compared to 2024 the price fell by 14.5%.
In May 2024 compared to 2023, the price of gasoline increased by 11% and a year earlier the decline in price was 12.9%. The increase in price was steep by 32.1% in May 2022 compared to 2021 and a year earlier the increase in price was 26.2%.
The good news comes from the price of electricity with the index in May recording a decrease of 4.3%, last year it had recorded a decline of 8.5% while in 2024 compared to 2023 the increase in price was 2%.
In May 2023 compared to 2022, the increase in the price of electricity was 8.3% and a year earlier the increase was 40.8%.
It should be noted that the government has taken a number of measures to mitigate increases in fuel and electricity prices as a result of the effects of the war in the Middle East region.
Specifically, it was decided to reduce VAT on electricity to 5% for all household consumers from May 2026 to March 2027. Reduction of the excise tax on fuels (gasoline and diesel) by approximately 8.3 cents per liter for the period April-June 2026. Zero VAT on meat, poultry and fish from April to September 2026 and maintaining the zero VAT on fruits and vegetables, which was already implemented previously.
Prices are difficult to go back six years, when there was deflation in the economy, as was the case in May 2020 and the sign was at -1.5%.
In May 2021, compared to 2020, the consumer price index had a rate of 2.4%, while in 2022 the increase was 9.1%, the largest recorded since 2020.
Although in the previous months the intensity of the price increases is not similar to that of the previous year, at this stage, it should be taken into account that any additional increase that takes place, no matter how small, comes in addition to the previous ones, resulting in a large total burden.
