Government announces support measures to mitigate energy and food price inflation

In response to inflationary pressures caused by geopolitical tensions in the Middle East and the Iran-Israel conflict, the government has introduced a support package to assist consumers and businesses. Key measures include an 8.33 cent per liter reduction in fuel excise duty, effective following parliamentary approval, expected between April 1 and 6, 2026. A zero VAT rate will be applied to meat, poultry, and fish from April 6 through September 30, 2026, expanding the existing zero-VAT list which includes fruits and vegetables. Additionally, farmers will receive a 15% subsidy for fertilizers and agricultural supplies during April and May. The hotel industry will benefit from a 30% wage subsidy for employees during April. Furthermore, a 5% VAT rate on electricity will apply to all residential consumers from May 1, 2026, through March 31, 2027. Fuel retailers have expressed concern over rising diesel prices, which are nearing 1.90 to 2.00 euros per liter.