Filenews 8 June 2022
The accusations made by MPs and party executives of profiteering in the fuel sector, the improper functioning of competition and oligopolies were described as unsubstantiated and slanderous by the representatives of the oil companies in Cyprus.
In fact, they argued that some companies have losses at this time, because they cannot directly transfer to consumers the increased prices of the fuel loads they receive. They pointed out that they import refined fuel, whose transport costs have increased, which also increases their costs.
Yesterday, in a long session of the Committee on Energy and Trade, the increase in the price of fuel and the impact on the economy and citizens, as well as the way in which the Consumer Protection Agency monitors oil prices, were discussed. The representatives of the companies in Cyprus, after hearing them from the MPs, who conveyed the difficulties faced by citizens due to the fuel price rally, went on the counterattack, rejecting the complaints made against them. They also called unacceptable the accusations, which they said are not substantiated, noting that from the price increases they lose revenue, as consumption is less.
Petrolina's CEO, Dinos Lefkaritis, said that in recent years there has been fierce competition between companies, noting that his company sells the gasoline of €1.82 per liter, as they have procured expensive cargo from Israel, while the other companies sell more cheaply. As he said, his company daily deposits its invoices in the customs system, stressing that companies are not the bad demon, calling on MPs to examine their books. He suggested that his company buys fuel from Israel, noting that due to the distance there is no possibility to procure fuel from other countries. "We can't feel accused, you have to respect the companies, you have to work to see what we're pulling every day so we don't have shortages," he added. He also said that his company in 2021 had a turnover of €306m, while its profit was €7.5m, which corresponds to 2.5% of its turnover.
On his part, the CEO of Hellenic Petroleum, George Grigoras, stated that the company operates under conditions of absolute transparency, stressing that they provide all the information, in relation to their costs, to the Ministry of Energy. He also said that the criticism of the companies is unfair, while the accusations, some of which are on the verge of slander, are unsubstantiated, according to him. According to Mr. Grigoras, the price of crude oil cannot be compared with the price of refined products. He also noted that the company transports fuel every ten days to Cyprus, stressing that there is a delay in the price adjustment.
The CEO of Staroil, George Petrou, noted that the companies are not thieves, stressing that there are no direct adjustments of prices depending on the fluctuation of international prices, because an average of five days is calculated and not of each load.
On behalf of ExxonMobil, Antonis Mouzouros stressed that all the evidence is before the competent ministry. As he said, due to the increases, in recent months the company has been making a loss, noting that the way of costing differs from company to company.
Shell's Director, Kostas Cigarettes, said the competition works. He said the companies' profit margin has not changed, it remains the same, without the critics taking into account that the companies have to do with increased costs.
Small profit margin, say service station owners
A spokesman for the service station owners said their wholesale margin is 5 cents, adding that they cannot profit because their profit margin is small. He also said that 25% of petrol stations are controlled by companies. He suggested that they have not yet been credited with reducing the excise duty on fuel since March 8.
On the other hand, consumers referred to the difficulties they are facing due to the increases and left spikes in the ministry in relation to the controls it carries out.
On behalf of the Ministry of Commerce, Konstantinos Karageorgis reiterated that there is no justification for a ceiling on the retail price of fuel and referred to the new system, with which there will be more accuracy in price monitoring. Members of the Trade Committee have called on the companies to submit their financial data to see if there is any question of profiteering.
