Slovenia, Government reintroduced price caps on motor fuels as of 10 May

, SEE Energy News

The Slovenian Government reintroduced price caps on motor fuels as of 10 May, setting the maximum retail prices at 1.56 euros/liter for regular petrol and 1.668 euros/liter for diesel. Wholesale prices are capped at 1.54 euros for petrol and 1.648 euros for diesel.

The statement from the Government said that it has reintroduced temporary administrative pricing for the two most popular fuels in view of the well-founded expectations of further disruptions in the market of oil products and significant price volatility in response to the planned EU embargo on Russian oil imports. The Ministry of Economy also said the measure was aimed at stabilizing the market and prices for the benefit of businesses and consumers.

The measure will be in force for three months, i.e. until 10 August.

Three leading fuel retailers in Slovenia (Petrol with 318 petrol stations, OMV with 120 and MOL with 53 stations) estimate the financial damage to their business as a result of the cap on retail prices will be about 30 million euros per month, which does not include the damage in case of a cap on wholesale prices.

The reintroduction of fuel price caps came after Robert Golob, the most plausible candidate for the new prime minister, announced that his new Government would impose energy price regulation, targeting not just fuel but other energy sources as well.

The outgoing government imposed temporary caps on fuel prices on 14 March, capping the price of petrol at 1.503 euros/liter and diesel at 1.541 euros/liter. The measure expired at the end of April, and the Government’s decision not to extend it sent fuel prices soaring.