ATHENS, March 11 (Reuters) - Greece on Wednesday announced a cap on profit margins on fuel and products on supermarket shelves for three months to avert speculation from rising energy prices triggered by the U.S.-Israeli war on Iran.
Oil prices rebounded on Wednesday as markets doubted whether the International Energy Agency's plan for a record release of oil reserves could offset potential supply shocks from the conflict in the Middle East which has damaged key energy infrastructure in the region and severely disrupted oil flows through the Strait of Hormuz, a key shipping route for global energy.
"Obviously, we cannot address primary price increases, but we are certainly sending a message that this economic turmoil should not lead to profiteering," Prime Minister Kyriakos Mitsotakis said during a monthly meeting with the Greek president on Wednesday.
Greece, one of Europe's most indebted nations, is recovering from a 2009-2018 debt crisis, but rising food and housing costs have weighed on consumers in recent months.
In a bid to stop fuel trading firms from taking undue benefits from surging energy prices at the expense of consumers, the Greek government said it will impose a cap of 12 cents per litre over the wholesale price of petrol and diesel on gas stations, while supermarkets will face fines of up to 5 million euros ($5.79 million) if their profit margins top the 2025 average.
The measures will take effect immediately and last until the end of June, the government said.
"Profits are legitimate but profiteering is not," Development Minister Takis Theodorikakos said.
($1 = 0.8636 euros)
(Reporting by Lefteris Papadimas and Angeliki Koutantou; Editing by Louise Heavens)
