A long-standing complaint of Greek consumers is the easy increase in the price of fuel when the price of crude oil rises and, on the contrary, their slow decrease when it falls.
It is noteworthy that the price of unleaded oil is currently at 1.977 euros per liter with the price of Brent at 87 dollars per barrel, while when crude oil was at the same level several months ago, gasoline was only 1.75 euros.
The fuel paradox is attributed to different factors depending on who you ask.
The refining industry points out that the price of Brent does not fully reflect what applies to Greece’s imports, as countries such as S. Arabia sell at different prices depending on each region. In our case, a price applies for the Mediterranean area which may differ from the corresponding Brent.
From there, it is emphasized that although crude oil is of decisive importance in the formation of the price, it is nevertheless not the only factor. At the same time, there is the fuel market which is international and follows its own rules. This means that even if crude oil is cheap at one point in time, the price of diesel or gasoline may be expensive if there is a shortage in their production.
It is a fact that in recent years in particular the diesel market has “tightened”, while Ukraine’s recent attacks on Russian refineries intensify the problem to a certain extent.
At the same time, there is also the seasonal demand for fuel which changes within the year and has its importance in the comparison.
Then we should point out the chronic pathologies of the domestic fuel market with smuggling and adulteration flourishing. These practices have never been adequately addressed by the authorities, despite the measures announced from time to time.
The impossibility of combating infringing behavior structurally adds to the cost paid by the consumer, since it does not allow competition and the formulation of fair prices.
For their part, the gas station owners point out that their margins are very small, while a number of gas stations across the country have already closed because they could not cope financially. They themselves blame trading companies and refineries for setting prices, considering that “the fish stinks from the head”.
To the above, we should add that the competent authorities do not proceed with periodic “x-rays” of the fuel market throughout its length and breadth. Therefore, it is not easy to get an overall systemic picture and assign responsibilities.
By extension, we have today a situation where gas stations, retailers and refineries can throw the ball at each other, with the consumer coming out permanently damaged.
