Fuel price regulation in Slovenia extends to wholesale prices

Since price caps were introduced, small service station operators have complained that they were simply not getting fuel from wholesalers, which forced many to shut down. [Shutterstock/n_defender]

The Slovenian government has capped the wholesale price of regular petrol and diesel in a move that came just weeks after retail prices were brought back under government control.

With wholesale prices frozen at €1.483 per litre of petrol and €1.521 per litre of diesel, wholesalers will have a two-cent profit margin.

Since price caps were introduced, small service station operators have complained that they were simply not getting fuel from wholesalers, which forced many to shut down.

That was because the capped prices have been set so low either wholesalers would have to sell at a loss to get below the retail price level or small operators would have to buy at a loss to remain within the constraints of retail-price caps.

“We believe the margin will facilitate the sale of fuel to small service stations, which have not supplied sufficient quantities of fuel,” Economy Minister Zdravko Počivalšek said.

Fuel retailers and wholesalers will be compensated for up to 60% of the losses they incur due to the price caps.

Price administration was initially put in place for a month, but the latest decree extends it until 30 April.

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