|
According to figures released recently by Brussels, Portuguese
motorists currently pay the fifth most of all European Union citizens
to refuel their cars with unleaded petrol. The Portugese Fuel Retail
Association claimed foul play by wholsalers.
The average cost for a litre of unleaded fuel in Portugal is €1.31,
a staggering 24 cents more expensive than across the border in
neighbouring Spain where fuel is subject to similar government taxes.
Portuguese would have to travel to the north of Europe in order to find
costlier petrol. Only the Netherlands, Finland, Denmark and Belgium
have higher fuel prices, with a litre costing between €1.32 and €1.39
at the pumps. At the opposite end of the scale are Romania, Bulgaria
and Cyprus, where unleaded fuel is retailed at 95 cents a litre.
The Portuguese Fuel Retail Association (ANAREC) had earlier indicated
they suspected foul play. ANAREC chairman Augusto Cymbron charged that
the price hikes were “scandalous” in that fuel companies appear to be
taking advantage of the unstable economic climate to line their own
pockets. “When you look at the case of BP, which in the first quarter
of 2008, saw their profits soar by 63 percent in relation to the same
period last year, everything becomes clear. How can they continue to
argue that the constant increases in fuel prices are motivated by the
high cost of oil?” he questioned. BP Portugal refuted these
claims, saying that their profit margin “is only a few cents”.
In spite of incessant accusations leveled by automobile associations at
fuel companies forming a cartel in Portugal to keep prices high, the
competition authority (CA) ruled in spring that despite fuel companies
tending to follow the example of dominant retailer Galp in increasing
or cutting prices, the CA ruled that no indications of foul play
existed.
The report, ruling out any illicit practices read: “In Portugal, in the
period 2004 to 2008, the average price of fuel before taxes tended to
adjust itself in accordance with the variations of international
prices, with a delayed reaction of four to five weeks in diesel and
five to six weeks for unleaded petrol 95”. “Parallel behaviour
was noted, but this in itself does not indicate a concerted effort to
keep prices the same”, the report added.
An inquest into the existence of possible fuel cartels was ordered last
year when the Portuguese Government, concerned over the apparent
synchronised increases by major fuel companies almost on a weekly
basis, opted to order the Competition Authority to conduct an in depth
analysis to either confirm or rule out fuel price fixing in Portugal.
Fuel retailers at the time joined the growing chorus of criticism
against the incessant increases ordered by fuel suppliers in the
country. Latest figures meanwhile show that non-branded fuel
stations, such as those found at supermarkets, now represent more than
30 percent of the market, and often allow savings of around five euros
per tank of fuel.
PetrolWorld 201009
|
