The Greek PM announced a deal to reduce fuel prices during the summer

Kyriakos Mistiakos, Greek Prime Minister said on Friday that the cost of gasoline and diesel for consumers will fall this summer after a deal between the government and oil refineries to tame the impact the Iran War has had on fuel prices.

Since taking power in 2019, Mitsotakis’ government has cut taxes and increased salaries.

The conflict in the Middle East has exacerbated the rise in consumer prices in Greece. This is a country where the purchasing power of the average household still lags behind the European average.

In response to a question from an opposition legislator about the cost-of-living,?Mitsotakis said that Greece's major oil refineries have agreed to reduce prices until the end next month.

He said that diesel fuel prices would drop by five cents per litre, and gasoline by 10 cents. The relief will only last until the end of August.

Fuel consumption usually increases during the summer when many Greeks travel to the countryside or islands for their holiday.

Mitsotakis, the leader of the ruling party, 'New Democracy,' which has a majority in the 300-seat Parliament, announced subsides for fuel, fertilisers, and discounts on ferry tickets earlier this year.

The government has promised to provide 'cheaper food' and other 'essential goods? from September, following consultations with local suppliers and supermarkets.

Next year, there will be a parliamentary election. (Reporting and editing by Helen Popper; Angeliki Koutantou)

(source: Reuters)