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Petrol Group Reports Significant Profit Decline in Q1 2026 Due to Regulatory Pressures

In the first quarter of 2026, Slovenia’s Petrol Group faced considerable financial challenges, reporting a substantial drop in net profits despite stable revenue levels and increased fuel sales. The company’s performance has been adversely affected by the country’s regulated fuel pricing system, which has not adapted to the rising operational costs faced by energy retailers.

Petrol Group’s revenue for the period from January to March stood at approximately 1.5 billion euros, remaining relatively stable compared to the same timeframe in 2025. However, net profit plummeted by 73%, with EBITDA decreasing by 39% to 41 million euros. Operating profit also saw a significant decline, falling by 65% to 14.8 million euros.

The most acute financial pressure was experienced in March, when regulatory measures concerning fuel pricing resulted in reported losses of 27.5 million euros. This occurred despite an increase in sales volumes during that month, highlighting the disconnect between regulated prices and actual operating costs. Petrol Group has expressed concerns that the current regulatory framework is unsustainable for fuel retailers.

Additionally, uncertainty in the market has been exacerbated by government indications of potential adjustments to fuel prices. Nonetheless, Petrol Group managed to ensure a continuous supply of fuel and energy throughout the quarter, indicating operational resilience amidst regulatory challenges.

During Q1 2026, Petrol sold around one million tons of fuels and petroleum products, marking a year-on-year increase of 10%. Revenue from merchandise and services grew by 8%, reaching 152.9 million euros, although gross profit slightly decreased by 4% to 151.9 million euros.

CEO Sašo Berger highlighted that the existing regulatory landscape hampers sustainable operations within the fuel retail sector, asserting that regulated pricing is leading to operational losses and heightened supply risks. He indicated that the company would pursue legal avenues and compensation related to these pricing structures while advocating for an overhaul of fuel price controls.

Vesna Južna, Chairwoman of the Supervisory Board, pointed out that regulated retail margins have remained stagnant for over ten years despite significant inflationary pressures and rising operational expenses—approximately 20% inflation over four years alongside more than a 35% increase in operating costs have severely impacted profitability.

The Supervisory Board has tasked management with developing contingency protocols for scenarios where regulated fuel sales could jeopardize profitable operations. At the end of March, Petrol Group employed 5,759 people, reflecting a decrease of about 2% compared to the previous year. The company invested 26.8 million euros during this quarter while maintaining a stable financial position and favorable credit outlook.

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