Petrol, Slovenia's largest fuel retailer, plans to recoup income it says it has lost due to regulated energy prices in Slovenia and Croatia. If the company cannot recover the money through voluntary compensation, it is ready for litigation.

The loss of income caused by regulating fuel and electricity prices in all markets where Petrol is present is estimated at €210 million for this year. The figure may climb as high as €248 million in 2023, chief executive Nada Drobne Popović told an extraordinary annual general meeting on 27 December.

Slovenia had hard fuel price caps in the first half of this year, a period in which Petrol estimates it suffered a €100 million loss of income. The price administration model has changed since and is now based on capped retail margins applicable only to service stations outside the motorway network, which the company sees as appropriate.

However, when the earlier model was in place "the prices had been set so low that Petrol was not even able to cover the purchase prices," she said. In late March, the previous government made the obligation to compensate companies after the regulation is abolished, but nothing has happened since.

In Croatia, the company's second largest market, capped prices have been in place since October 2021 and the loss of income is estimated at almost €46 million.

The shareholder meeting was requested by Vizija Holding and Vizija Holding Ena. Both are owned by Slovenian businessman Dari Južna, who believes the price regulation in Slovenia was an "unwarranted measure".

"The regulation caused a decline of €100 million in operating profit in the first half of the year, while the state collected €97 million more in taxes because drivers passing through, residents of neighbouring countries and also speculators took advantage of the regulated prices," said Južna.

Drobne Popović said Petrol had been striving for dialogue and solutions. "We sent 19 letters to the Economy Ministry and two compensation claims to the government," she said. Petrol representatives met with Economy Minister Matjaž Han in December, but the talk ended without a solution.

The Petrol management will therefore initiate amicable settlement procedures in Slovenia and Croatia in January. If these fail, it will file lawsuits at the Ljubljana District Court and the Zagreb Commercial Court.

The company also intends to turn to the European Commission and might suspend the sale of some fuels. "We don't want to do that ... but we will have to scale down operations, otherwise we will get Petrol to a point where it will need a capital increase," Drobne Popović said.

The company is firing the first shot in Croatia on 28 December, when most service stations will be closed for an hour in protest. "This is an appeal to the [Croatian] government to sit down together and find a way to secure reliable supplies next year," she said.