How much is Putin’s war costing Greek households

The price of basic food products have increased by leaps and bounds, and the increase compared to last year exceeds 13%

The political debate on rising inflation that had crippled many households and businesses has now taken to the floor of parliament. The data processed by OT show significant increases mainly in food, petrol and diesel, while subsidies have contained some of the costs in electricity.

Things reached a head with the PM’s address on Friday in Parliament. PM Mitsotakis placed the war in the Ukraine at the center of the issue showing it as the reason for the global onslaught of inflation, which escalated in February 2022. “If someone knew nothing about what has happened in the world in the last eight months and read your question (addressed to the leader of SYRIZA, Alexis Tsipras), he would indeed be left with the impression that inflation is due to some dark forces that with the Government’s tolerance are profiting at the expense of the Greeks. You told us all this again today,” Kyriakos Mitsotakis said on Friday from the floor of the Greek Parliament.

Price hikes

So far, it appears that basic food product prices have jumped, and the increase compared to last year exceeded 13%. Shelf appreciation is ongoing, and market executives estimate that the average increase in the consumer basket may reach 15-17% by the end of 2022. Scenarios show further increases in meat prices, which have already risen by 17 % and it could transpire that in the next period the increase will reach 20%, as in other basic items. For example, from November last year until this month, the average price of a liter of branded sunflower oil has risen by 90%. The data of the electronic platform e-Consumer of the Ministry of Development, shows that in corn oil the increase reaches 41% and one kilogram of flour for all purposes is sold 35.6% higher. Also, six medium eggs cost 33% more, a liter of fresh milk 22%,and a slice of feta is 20% more expensive. It is noted that food items make up 35% of the total monthly expenses of households.

Heating oil

Last year at this time, heating oil sales began, without subsidies, at 1.16 euros per liter while before the end of the winter season the price of oil reached 1.60 euros per liter. The result is that final consumer prices are set at 1.37 to 1.38 euros per liter. Thus, the starting price of heating oil is 18% higher compared to last year’s corresponding first day of fuel availability. In less than two weeks, the selling price of diesel exceeded that of regular unleaded gasoline. Specifically, heating oil has increased by 18% compared to last year (from 1.16 euros per liter in 2021 to 1.37 to 1.38 euros per liter in 2022), unleaded gasoline by 16.5% (October 2022: 2.034 euros/liter, October 2021: 1.745 euros per liter) and diesel by 43% (October 2022: 2.121 euros per liter, October 2021 1.483 euros). It is recalled that the 15-cent diesel subsidy at the pump was abolished on September 30, after six months of implementation.

Electricity and natural gas

In electricity and natural gas, subsidies held down costs, but increases were still significant. The figures show that the increase would have doubled compared to last year if there were no government interventions. European research shows that Greek residential natural gas consumers faced large increases of 29% in September. Thus the price per kilowatt hour for households in Athens was the fourth highest among European 33 cities as it rose to 27.68 euro cents. According to HEPI gas prices rose in Greece reflecting the TTF rally which was also caused by the damage to the Nord Stream pipelines.

In addition, the government for the past month had not announced a subsidy for the price of households. Which he did for the consumptions of October, when a reduction in costs is expected. According to the survey, which was conducted among 33 EU cities, Athens is ranked 16th in terms of household consumers’ expenditure on electricity consumption. The average price per kilowatt hour was 29.52 euro cents or 0.2952 euros. Athens is almost 5 cents of the euro or 0.05 euros below the European average and almost 2 cents of the euro or 0.02 euros from the average price of the 33 EU cities.