V. Kikilias: New €32 million measure to contain ferry costs and support island residents

The Government is proceeding with a new €32 million measure aimed at limiting the impact of rising fuel costs on ferry operators, containing ticket prices and safeguarding maritime connectivity for the islands. The measure, developed in cooperation with the institutional representatives of the ferry sector, is a joint initiative of the Ministry of Maritime Affairs and Insular Policy and the Ministry of National Economy and Finance, following the relevant announcements previously made by Prime Minister Kyriakos Mitsotakis regarding the need to support the ferry sector and island communities.

Commenting on the new measure, the Minister of Maritime Affairs and Insular Policy, Vassilis Kikilias, stated:

“The ferry sector is of vital importance for our islands and for the transportation of island residents. Rising fuel costs are placing significant pressure on ferry companies. That is why we are proceeding with a new €32 million measure aimed at easing the burden on companies, helping to contain ferry operating costs and providing tangible support to our island residents.”

Specifically, the measure provides for financial support amounting to €0.16 per litre of marine fuel, for fuel purchases made during the period from 1 September to 31 December 2026. It applies both to ferry companies operating on non-subsidised routes and to those serving Public Service Obligation (PSO) routes (subsidised routes).

Close cooperation is currently underway between the Ministry of Maritime Affairs and Insular Policy, the Ministry of National Economy and Finance and the Independent Authority for Public Revenue (AADE) to finalise the terms and conditions for implementing the measure. The aim is to establish a fully electronic process for the submission, verification and payment of the financial support, through the electronic cross-checking of the relevant supporting documents.

The measure is expected to be implemented under the European State aid framework METSAF, subject to the required approval by the European Commission. Provision is also made for the possibility of extending the measure, should the fuel price crisis continue and the corresponding European framework be prolonged.

The new measure complements the scheme, introduced for the first time this year, providing for up to €60 million in compensation to ferry companies for mandatory passenger discounts. This fulfils a longstanding request of the sector and has enabled us, despite the energy crisis, to keep ferry ticket prices under control for the second consecutive summer.

Through these two measures, with a total budget of up to €92 million, efforts to maintain the viability of the ferry network and ensure uninterrupted transport services to the islands are further strengthened.