The Slovenia Times

Motor fuel pricier due to higher margins

Energy
A filling station. Photo: Bor Slana/STA

Prices of two top selling types of fuel at filling stations off the motorway network in Slovenia rose on 16 July after the government raised margins following appeals by fuel retailers to do so.

Over the next two weeks regular petrol off motorways will be sold at €1.514 per litre, up by 3.5 cents, and diesel at €1.528 per litre, up 2.1 cents compared with the past two-week period.

The government increased the cap on retail margins on regular petrol and diesel by two cents following months of complaints by fuel retailers, who argue the margins are so low they do not cover the cost of doing business. Some even threatened legal action over the issue.

The highest permitted margins now stand at 9.94 cents per litre for regular petrol and 9.83 cents for diesel. The retail margin on heating oil remains at 8 cents.

Energy company Petrol, the market leader, said the increased margins still do not offset the costs of fuel distribution nor do they factor in the costs of adding a biocomponent.

"Our goal is for the margins to come close to the EU average of about 20 cents per litre of fuel as the only way for us to remain competitive and support the green transition," Petrol added.

The government argues that, had it not capped the margins, "retail prices of regular petrol and diesel could have increased more, which could affect the competitiveness of companies on international market and the social situation of end consumers".

Prices of fuel sold off motorways are calculated based on a method that takes into account global fuel prices and the dollar-euro ratio. They change every two weeks.

Meanwhile, the prices at filling stations along the motorway network can be set freely by fuel retailers. They are about 20 cents higher on average than outside the motorway network.

Slovenia is one of the few countries in Europe that regulate fuel prices.

Croatia has a similar pricing system as Slovenia although fuel margins there are higher.

The new prices applying there from 16 July over the next two weeks are €1.55 per litre of regular petrol, up a cent, and €1.45 for diesel, which is as much as so far.

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