Greece: Absence of Competition Hurting Fuel Industry and Consumers – IMF
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Tuesday, 25 September 2012 |
A lack of competition is hindering growth in Greece’s fuel market and costing motorists more than $1bn a year, a new report compiled by the International Monetary Fund (IMF) has found. Prices remain unacceptably high while structural issues continue to persist despite the promise of deep reforms, it said. Regulation, red tape and lax efforts to liberalise the sector are deterring new competitors from entering the market, according to the international agency.
The report was put together by one of the IMF’s teams in Athens sent to oversee the implementation of the country’s €173bn sovereign bailout, the second such package it has received since the beginning of the financial crisis.
Despite a review of the sector in 2006 producing several papers detailing how a more effective fuel market could be brought about, none of the proposed changes were acted upon. A government spokesperson said after the report was made public that it is committed to improving conditions for Greek motorists, who have been among the worst hit by the country’s continuing austerity drive.
“A better functioning fuels market is something we desire and we will examine every proposal on how to bring that about,” said Simos Kedikoglou (pictured). “We are already doing that by stepping up our checks because we are well aware that due to high taxes Greek, on account of the crisis, pay very high prices for gasoline overall.”
PetrolWorld 25092012
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