Slovenski Petrol loses 248 million euros due to the regulation of fuel prices
LJUBLJANA (Slovenia), December 29 (SeeNews) – Slovenian energy group Petrol [LJE:PETG] has begun an assessment of the constitutionality of the regulation of fuel prices in Slovenia and Croatia, estimating that the measure will take a hit in the amount of 248.1 million euros ($263.9 million) in 2023, they announced.
“The measure will affect the investment capacity and dynamics of Petrol’s green transition. In accordance with the available funds, Petrol is reducing investments by 100 million euros in 2022 and 2023, as well as reducing the share of investments intended for the energy transition,” announced Petrol. the company wrote in a filing with the Ljubljana Stock Exchange on Wednesday.
The regulation of fuel prices in all markets in 2022 had a negative impact on the Petrol Group’s earnings before interest, taxes and depreciation (EBITDA) in the total amount of 194.1 million euros. The regulation of the prices of other energy products on the markets of Slovenia and Croatia had a negative impact in the amount of 16 million euros, Petrol announced.
“The current regulatory measures in the field of fuel sales are disproportionate, there are no longer any circumstances that would require regulation of the prices of petroleum products, and oil prices are back at the level before the start of the war in Ukraine. “Price regulation is inadequate because it destroys the market,” notes Petrol.
Petrol is considering suspending the sale of energy products with regulated prices in Slovenia until appropriate market conditions are restored, the company added.
In the first nine months of 2022, the company reported a net profit of 24 million euros, which is 74% less than the previous year. Due to government regulation of the fuel market, the adjusted gross profit of the Petrol group in Slovenia decreased by 108.9 million euros, and in Croatia by 34.6 million euros, Petrol announced in November.
In March, the Slovenian government capped the wholesale price of regular gasoline and diesel to protect the market from price fluctuations caused by the war in Ukraine. The upper limit was changed several times during the year and currently amounts to 1.623 euros for a liter of diesel and 1.464 euros for a liter of gasoline.
Croatia first introduced a fuel price cap in February and lowered it to 10.60 kunas ($1.50/1.41 euros) per liter of gasoline and 11.59 kunas per liter of diesel in December, even as oil prices fell on the global market. .
($ = 0.94008 euros)
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