If there is an increase in the price of oil, the next day there will be no oil in Greece, the Minister of Development Kostas Skrekas clarified on Wednesday in his intervention in the Parliament on the amendment with which attempts to deal with inflationary pressures in consumer staples. Mr. Skrekas pointed out that the government is proceeding with controls at all stages of the supply chain after the producer.

In particular, referring to the prices of olive oil, the Minister of Development said that today the oil has reached a wholesale price at the mill or the producer, at 8 euros: “Why do we have 8 or 9 euros in oil? Is the Greek government to blame? No. This is the Europe-wide price. If we put a price of 3 euros, for example, in the price of oil to the producer, what will happen? The next day there will be no oil in Greece. It will be sold and exported to Spain, Italy and other countries. Unfortunately, that’s how the free market works. So what can we do about oil? [..] To control the stages of the supply chain after the producer, if they take advantage of the critical situation and add profit above what they had in previous years. And that’s what we’re checking,” said Mr. Skrekas.

Subsequently, the Minister of Development referred to the proposal to reduce the VAT on food, noting that such a thing applied in Spain without success. THE Spain reduced VAT from 4% to 0% on bread, flour, milk, vegetables and cereals. Reduced VAT from 10% to 5% on cooking oil and pasta. What did it achieve? Annual inflation in bread and cereals was 5.8% in Spain, with 0% VAT, while in Greece it was 4%. What does this mean; Where did the VAT go? In the pockets of the intermediate stages of the supply chain, Mr. Skrekas said.

For milk, he said annual inflation in Spain was 15.1% and in Greece 6.3%. For olive oil he said that the annual inflation was 52.5% while in Greece 23.5%, for pasta 2.9% inflation in Spain and 0.1% in Greece.

“Is the measure more effective in Spain? [..] (Spain) continues to have a reduced VAT and the revenues of the Spanish state are reduced and (is) increased inflation compared to Greece. This is the reality” remarked Mr. Skrekas.

Greece has taken measures against inflation, which no other country has taken, noted the Minister of Development.

As we did in the energy crisis, we are doing the same in the issue of inflation in food and consumer products, with actions and measures that no other country has taken, said Mr. Skrekas: And the household basket, and the special labeling of products which will have a reduction of 5%, for at least six months, but also the ceiling on the business profit margin, they are measures that Greece, and only Greece, has taken first, and we will wait to see the results and we will be judged by them, he noted.