Compensatory support measures worth €174 million will be provided to vulnerable groups following the harmonisation of national legislation with EU requirements on the blending of biofuels into diesel. The measure is expected to increase the price of diesel by around 7 cents per litre in 2028, while petrol prices are expected to rise by 2.5 cents per litre.
This was stated by a representative of the Ministry of Finance before the House Energy Committee, which on Tuesday, 1 September, continued its discussion of the harmonisation bill aimed at further promoting and increasing the use of renewable energy sources (RES), including in the transport sector, as well as the use of sustainable fuels in aviation.
It was noted that support for vulnerable groups will cover the period from 2027 to 2032. The representative said that a further two months would be needed for the bill to be submitted to the EU, which would then require four months to examine it.
He said the grant schemes are expected to begin in 2027, while the new system will come into effect in 2028.
“Member states have the option of launching support schemes one year earlier in order to ensure a smoother transition for people experiencing energy and transport poverty,” the ministry official added.
The total support package for vulnerable groups will be financed through €131 million in EU funds and €43 million in national funding, MPs heard.
The Ministry of Energy’s Permanent Secretary, Kyriakos Iordanou, said the harmonisation would “unfortunately result in higher fuel costs,” adding that the bill is based on European regulations.
A representative of the Ministry of Energy’s Energy Service said that, under the EU directive, there is an obligation to meet a binding overall target, as well as specific targets relating to the transport sector.
(Source: CNA)
