Greece Targets ‘Greedflation’ with Profit Caps on 61 Essential Goods - iefimerida.gr

Greece Targets ‘Greedflation’ with Profit Caps on 61 Essential Goods

 Greece Targets ‘Greedflation’ with Profit Caps on 61 Essential Goods
Greece Targets ‘Greedflation’ with Profit Caps on 61 Essential Goods
ANTHEE CARASSAVA

Greece has imposed an emergency ceiling on gross profit margins for 61 categories of essential goods, a move aimed at preventing price gouging as geopolitical instability in the Middle East threatens to drive up domestic inflation.

Development Minister Takis Theodorikakos says the measure, effective immediately through June 30, covers a broad range of products, including fuel, baby formula, and staple foods like pasta and olive oil. 

ΤΟ ΑΡΘΡΟ ΣΥΝΕΧΙΖΕΙ ΜΕΤΑ ΤΗΝ ΔΙΑΦΗΜΙΣΗ

Under the new rules, businesses are prohibited from exceeding the average profit margins they recorded in 2025.

"Profit is legitimate, but profiteering is not," Mr. Theodorikakos said in an interview with ANT1 television. 

He warned that companies found in violation could face fines of up to €5 million ($5.4 million), depending on the severity of the offense and the size of the establishment.

The crackdown is being spearheaded by the newly established Independent Authority for Market Control and Consumer Protection (DIMEA). 

In its first six days of operation, the agency conducted roughly 1,500 inspections at gas stations and supermarkets nationwide. 

Early reports indicate that fuel trading companies are now restricted to a profit margin of five cents per liter, while gas stations are capped at 12 cents.

ΤΟ ΑΡΘΡΟ ΣΥΝΕΧΙΖΕΙ ΜΕΤΑ ΤΗΝ ΔΙΑΦΗΜΙΣΗ

The government’s intervention follows a surge in global oil prices, which briefly surpassed $100 a barrel amid regional conflict. 

While industry groups have argued for tax cuts on fuel—which currently account for roughly 60% of the pump price—the government has rejected the proposal to protect state revenues.

Mr. Theodorikakos defended the policy as a vital shield for the middle class and vulnerable households. 

He noted that similar previous interventions resulted in €20 million in fines, proving the state’s intent to enforce compliance.

As the April 1 deadline for property owners to clear dry land also approaches, the Mitsotakis administration is increasingly framing administrative mandates as necessary tools for national resilience in a period of heightened climate and economic risk.

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