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Dec 05, 2023 11:54 EEST
December 5 (SeeNews) - Slovenian energy group Petrol [LJE:PETG] has asked the country's constitutional court to review the government's decision to decrease profit margins on certain petroleum products, the Slovenian company said.
Petrol contends that the government's decision to reduce the maximum profit margin on certain products, limiting the possibility for price increases, is unfair and directly harms its business, the company said in a filing with the Ljubljana Stock Exchange on Monday.
"We stress that such margin neither reflects the real market conditions nor allows for business viability, especially in less densely populated areas. As recognised by the Constitutional Court practice, profitability is the foundation of the economic activity. The regulated margin has been unchanged since August 2022 and the substantially increased operating costs in 2023 make the oil sellers' operating conditions more difficult," Petrol said.
The changes lead to a disproportionate pressure on Petrol's operations and forces it to reduce the funds available for investments in energy transition, the company said.
On November 30, the Slovenian government established a revised maximum allowable margin for unleaded petrol at 0.0694 euro per litre, marking a 30% decrease compared to the rate of 0.0994 euro per litre prior to the decree amendment. The margin on diesel was set at 0.0683 euro per litre, down by 31%.
The government also reduced the excise duty by 6% to 0.46051 euro per litre of petrol, and by 7% to 0.39267 euro per litre of diesel.
($ = 0.92233 euro)
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