Efforts are being made by the Greek Ministry of Shipping, in consultation with the economic staff, to address the increase in ferry fares already announced by coasters from May 1, due to the use of a more expensive type of low-sulphur fuel.

Sources from the shipping ministry, speaking to APE-MPA, said that last year the increases compared to 2023 were close to 1%, noting that the total fare (including reservations and VAT) on the 24.9 million tickets cut was 27.23 euros, an increase of 1.1% compared to 2023.

They stressed, however, that the issue of the ticket price increase, due to different fuel use, continues to be examined with the relevant ministries, while they said that close cooperation with the Competition Commission continues ahead of the summer, in order to determine whether some companies are using their dominant position in the market by increasing prices.

They also pointed out that the use of the different fuel would not lead to an increase in the ticket price on all ships, since high-speed vessels already consume this fuel, while others operating shorter distances do not use it.

However, for their part, the coasters have submitted specific proposals so that this increase will not be passed on to the passenger and they expect to take relevant initiatives.

What is the new fuel

MGO (Marine Gas Oil) is a type of refined low sulphur marine fuel that is cleaner than residual fuels such as heavy fuel oil (HFO) but more expensive. Due to the implementation of FuelEU Maritime, this fuel complies with international regulations, in particular those set by the International Maritime Organization (IMO), and is often used in Emission Control Areas (ECAs) where stricter sulphur limits apply such as the Mediterranean.

This fuel, which is more expensive, is already used by high-speed vessels and does not apply to all ships.

Shipping Minister Christos Stylianides, speaking recently at a conference of coasters organized by the Association of Passenger Shipping Enterprises (Union of Coasters), referring to the costs that are coming and also concern the tickets, said that the government has held two meetings in which other ministers participated and is discussing to prevent the coming summer with specific actions.

He added that what was discussed in the European Commission and was also raised by him insistently and accepted is that the revenue from the emission allowances related to the ETC emissions trading scheme of shipping and shipping should not go elsewhere, it should come back as compensation back to the shipping industry for the green transition.

As he said the European Commission replied that this is the responsibility of the member state and in this fact we have to convince the Ministry of Energy that the ETS of the coasting industry should be returned to the shipping industry as this is very crucial to enable this industry and the shipping industry to adapt to the new data and to face the costs of the green transition.

“I believe that we will find alliances and there is already acceptance while we will discuss internally and in the government to help manage the tickets in the coming summers as well,” Stylianidis said.

It is noted that in our country on the Patras-Italy ferry connections and on islands with more than 200,000 inhabitants (Crete), the EU ETS emissions trading system is already in place, which is what each ferry company will have to buy, for every ton of fuel it burns, the market value of the carbon dioxide it emits.

The shippers’ proposals

At the moment there is an objective issue concerning the increased price of fuel, which constitutes 47% of the ship’s operating costs, Dionysis Theodoratos, president of the Association of Passenger Shipping Enterprises, said in a statement to AP-MPA.

He said that the green policy in Europe also has a cost that bears the cost of the passage and operation of the ship, and when asked if there are specific proposals on how this increase in the ticket price could not be passed on to the passenger, he stressed that the state could subsidize the oil companies the difference in the cost of one fuel, compared to the other fuel, nor so that the shipping companies can get MGO fuel at the price of VLFO.

He also stated that another proposal would be to reduce the VAT on vehicle tickets from 24% to 13%.

Theodoratos said that the vehicle is not a commodity but accompanies the passenger and added that the reduction of VAT is easy to do and the cost to the Greek economy is not high as it will come out of the non-reduction of traffic as well.

On the allegations that if the government reduces VAT the companies will not pass this reduction to the consumer, he added that this the Ministry of Shipping can easily check this through the price watchdog.

The president of SEEN also said that the VAT could be reduced on the passenger’s ticket as well as at the moment we have the highest compared to other countries for example in neighboring Italy it is at 10% while in other countries it is at 5%.

He stressed that the state for the barren lines should implement the state tariff in relation to the ticket cut.

He stressed that the surcharge on the price of the ferry ticket from May 1 could also be found with the fuel clause that has been instituted by the Ministry of Shipping for the barren routes and has been accepted by the Competition Commission.

The president of SEEN also said that, according to the latest estimates, 32% to 34% of passenger tickets in the entire Greek shipping industry are either discounted through the mandatory discounts for vulnerable groups defined by the Ministry of Shipping, or commercially for the rest of the passengers by the same companies.

He also said that the fare costs in other means of transport, such as the KTEL, are subsidized, which is not the case in Greek shipping, which provides a discount policy on its own.