The fuel station sector has been in a dynamism in recent months. price war in the midst of the energy crisis. The government was formed last April Mandatory discount of 20 cents per liter of fuel for all drivers whose costs are borne by public budgets (and will be reformed from next January 1 to apply assistance only to certain economic sectors).
Big oil companies are applying additional discounts to their customers at a time when fuel prices are increasing rapidly. It is emphasized that these extra discounts from industry giants (which allow drivers to discount up to 35 and 40 cents per litre) are the way to help in the midst of a crisis as requested by the Government.
But now the price war has turned into a legal battle over complaints from independent low-cost gas stations. Repsol, Cepsa and BP for aggressive discounts and leading to an investigation by the National Markets and Competition Commission (CNMC) for possible anticompetitive practices.
Repsol (with more than 3,300 gas stations) and Cepsa (with close to 1,500 gas stations), the two largest gas station groups in the Spanish market, have accumulated more than 550 million Euros of special discounts to their customers since last April. According to internal data to which El Periódico de España of the Prensa Ibérica group has access, their accounts are debited, with the exception of the mandatory 20 cents, whose cost is covered by the Treasury.
reply It was the first operator to introduce special discounts two weeks before the government approved the mandatory bonus. From mid-March to the end of this year, the company applied additional discounts of 20 cents at gas stations in Spain for a year. total amount of 439 million euros with extra discounts for customers Special discounts for those using Waylet’s payment app, Repsol’s electricity and gas customers, or other oil company’s partners, or professionals in the shipping industry.
cesa assumed Special discounts of 113.5 million Euros between March and November, the cost of sales must accrue during this month. In this case, the company includes in this amount only the effect of discounts specifically applied to the energy crisis, not the usual discounts for both individuals and transport professionals.
legal battle
With the market breaking as discounts intercept, the trade jolt led to a legal battle. CNMC has launched an investigation into the three largest oil companies operating in Spain for possible anti-competitive practices, and in recent weeks even technicians from the agency have conducted inspections at Repsol, Cepsa and BP’s headquarters following complaints from the independent gas station. associations for alleged abuse of market position by large groups.
Independent associations of low-cost service stations denounced the commercial and operational strategy of the three big oil companies before the Competition—in fact, months before—for the high wholesale prices they received for fuel and the aggressive discounts they had applied. The customers of their own gas stations mean that the industry giants are selling with almost zero margin, according to the alarm.
According to the complaints of small gas station networks, it is a kind of “clamp effect” that makes it impossible for them to compete on equal terms and pushes them away from the market for applications that could be considered as ‘dumping’. price) below normal price or even production cost). Among the complainants is the Association of Automatic Gas Stations (Aesae), the organization that brings together the main independent gas station networks such as: Ballenoil, Petroprix, Bon Area or Plenoil.
6,000 meters of public money
This Government studies that ended the 20 cents discount on a liter of fuel for all drivers launched on April 1 as part of the anti-crisis shield in the middle of the price spiral. The general discount officially expires on December 31, and the Administrator analyzes the possibility of replacing the current random discount with other special protection measures in the economic sectors most affected by the increase in fuel prices (transport, livestock, agriculture, fisheries…).
The executive is trying to use anti-inflation measures to control the price of food and redirect aid to fuel. Due to its enormous financial impact and greater benefits to citizens with higher incomes while promoting the use of private transport.
The significant financial impact of the discount on each liter of fuel consumed for all drivers, individuals or professionals, in particular, will continue until the end of this year alone and will amount to 6,027 million euros.According to the Government’s official estimate included in the Budget Plan for the next fiscal year submitted to the European Commission.
The executive considers the forecast Budgetary impact of 5,752 million fuel cuts this year and 275 million residual costs next yearor as a result of delaying compensation payments to gas stations in the first weeks of 2023.
Public accounts pay the discount in full to all drivers, individuals and professionals, regardless of income level; Except for some big oil companies, for which the government takes on 15 of the 20 cents for their sales. The government plans to continue many of the measures adopted in the first months of next year or through 2023. to mitigate the impact of the energy crisis on homes and businesses, but a reduction in fuel is doubtful.