Fuel retailers in Slovenia have expressed strong dissatisfaction with the Government’s proposed overhaul of fuel price regulations. The planned changes aim to lower the maximum allowable profit margins on already regulated fuel prices and extend the regulation to petrol stations located along highways. Leading retailer Petrol has warned that such policies could force the company to take drastic measures, including closing petrol stations.
Petrol’s CEO, Saso Berger, criticized the draft regulation, saying it threatens not only the sustainability of their business but also the broader national strategy for green energy transition. The proposed regulation would further reduce traders’ profit margins and expand government control over highway fuel pricing. Berger cautioned that these measures could have far-reaching negative effects on the economy.
He explained that the regulatory framework has become increasingly unsustainable. Trader margins account for just 7% of the final fuel price paid by consumers, while the purchase cost makes up about 33%, and government-imposed taxes cover the remaining 60%. Berger highlighted that although trader margins have remained unchanged since 2023, government taxes have increased by 42% during the same period. If the new rules are implemented, Petrol may have to resort to unpopular cost-cutting strategies, such as closing petrol stations, reducing investments in green energy projects, and cutting support for cultural, sporting, and educational initiatives.
Shell Adria has also voiced concerns about the regulatory changes, criticizing the lack of transparency and clear justification behind the government’s approach. According to Shell, several versions of the regulation are circulating, none of which have been made public, and frequent changes are creating confusion. The company noted that the current regulatory environment is becoming more challenging and worrying for shareholders.
Shell pointed out that fuel profit margins in Slovenia are among the lowest in the European Union. Their margin on gasoline is about half the EU average, and the margin for diesel is less than a third. In some cases, they cannot even cover basic operating costs, let alone invest in development and renewable energy projects supported by both the EU and Slovenian Government. Shell also criticized the rising tax burden. While the government claims its measures aim to protect consumers and maintain corporate competitiveness, Shell argues the reality is more damaging.
Fuel excise duties in Slovenia are the highest among neighboring countries. As a result, fuel retailers face declining sales, particularly in transit freight, with many customers choosing to refuel in Croatia, where taxes are lower despite higher margins. Berger added that wholesale fuel prices in Slovenia and Croatia are nearly the same, but taxes in Slovenia are much higher, making fuel cheaper across the border. He also criticized the absence of professional analysis supporting the regulatory proposal, noting that no expert foundation has been provided despite legal requirements.
The current fuel pricing regulation in Slovenia is set to expire on 18 June.
