Dodecanese: unleaded above 2 euros at the pump

The psychological threshold of two euros per litre has been passed by the national average price of regular unleaded petrol, which stood at 2.002 euros, while diesel reached 1.996 euros. According to a report in the newspaper Dimokratiki tis Rodou, in the Dodecanese the average price of unleaded came to 2.119 euros per litre, making it the second most expensive region in the country after the Cyclades, where the price reached 2.257 euros. The gap between the Dodecanese and the national average comes to 13.7 cents per litre, meaning that a fifty-litre fill-up costs 6.85 euros more than on the mainland.

The differences grow the smaller the island. On Kasos the price reaches 2.210 euros, on Nisyros 2.180 euros, on Patmos 2.145 euros for regular and 2.245 euros for premium, on Kastellorizo 2.100 euros and on Leros 2.090 euros. The explanation lies in the cost of transport: fuel reaches the small islands by tanker ship or road tanker, which carry freight charges, while the small quantities do not allow economies of scale. For automotive LPG the difference is even greater, as in the Dodecanese the price stands at 1.374 euros against an average of 0.959 euros, that is a gap of 43%. On islands with few filling stations, competition is also limited, which leaves less room for prices to move downwards.

Over the horizon of one year, unleaded in the Dodecanese has risen by 10.6%, that is 20.3 cents per litre, while diesel has risen by 22.9%, that is 38.6 cents. This burden does not concern drivers alone: the cost of fuel is passed on to transport, to the prices of goods, to agriculture and to tourism, sectors on which the islands’ economy depends. On the small islands, where electricity is also generated with oil, the price rises translate into an increased cost for the whole system.

The state subsidy of ten cents per litre on diesel, which applied in August, expires in fourteen days, while the refineries’ discounts apply until 31 August. From March to June the cost of state interventions at the pump came to 300 million euros, with the total sum spent reaching 370 million. Brent crude is moving towards 92 dollars a barrel because of the conflict between the United States and Iran, with no clear prospect of de-escalation. It has not been announced whether the subsidy will be extended in September. The islands’ professional associations have for years been asking for a permanent mechanism to offset the transport cost of fuel, similar to the one that applies to other goods.