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Slovenia: Petrol criticizes fuel price regulation, shifts focus to more predictable markets

Slovenian energy company Petrol has voiced dissatisfaction with the Government’s decision to maintain the current fuel price regulation system across all filling stations and indicated it will increasingly focus its development efforts on markets with more predictable regulatory conditions in the region.

The Government recently adopted a new decree extending the existing pricing mechanism for petrol, diesel, and heating oil for another 14-day period. Under this framework, the maximum permitted retail margins remain unchanged and apply uniformly to all fuel stations, including those along highways.

Petrol states that it engaged constructively during the preparation of the decree and proposed adjustments to better reflect real operating costs and the specific characteristics of the Slovenian market, but these suggestions were not incorporated. The company notes that regulation affects only a small fraction of the final price, with taxes and excise duties accounting for roughly 80–85 cents per liter, while retailers retain less than 10 cents as margin. Petrol also emphasizes that Slovenia has some of the lowest regulated fuel margins in both the region and the European Union.

At the same time, operating expenses have increased sharply. Labor costs have risen by around 10% annually, prices of industrial goods by nearly a quarter, and service costs by more than 17%. Additional pressure comes from requirements to raise the share of bio-components in fuels, further squeezing already tight margins. The regulation enforces identical margins for all locations, including motorway stations, where operating costs are significantly higher. Petrol warns this approach undermines competitiveness, discourages investment, accelerates cross-border fuel purchases, and threatens funding for energy transition projects, with negative effects ultimately extending to consumers and local communities.

As a result, Petrol plans to continue adjusting its strategy, directing new development activities toward countries with stable and economically sustainable regulatory frameworks. While ensuring a secure fuel supply in Slovenia remains a priority, the company stresses that current conditions do not allow margins to cover even basic operating costs. Petrol remains committed to investing in Slovenia’s infrastructure, development, and energy transformation, but achieving this requires a regulatory environment that supports long-term viability. The company is open to dialogue and cooperation with authorities, expressing confidence that a more balanced, cost-based solution aligned with good European practice can still be achieved.

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