Slovenian energy company Petrol has announced a series of immediate measures in response to the government’s recent fuel price controls. CEO Saša Berger revealed that the company will suspend all development investments within Slovenia, freeze sponsorships and donations, and prepare to renegotiate contracts with suppliers. Additionally, Petrol plans to close several unprofitable petrol stations.
Berger expressed strong disappointment with the government’s decision to extend regulated fuel pricing to stations located along highways and expressways, intensifying an already difficult regulatory environment. He explained that operating costs at highway stations are roughly three times higher than at other locations due to expenses such as elevated rent fees imposed by the national motorway operator. In fact, rental costs alone exceed the maximum allowed margin at 15 highway stations. As a consequence, Petrol is shifting its focus by halting domestic development projects and redirecting investments toward markets with more favorable regulations. Berger noted that this will inevitably impact Slovenian companies supplying Petrol, although exact figures regarding redirected investments have yet to be disclosed.
Meanwhile, the company will review supplier contracts, continue cost-cutting efforts, and proceed with closing underperforming stations. While specific closures are still under review, Petrol warned that fuel availability—especially in rural areas—is likely to decline. Berger highlighted that most petrol stations operate at a loss when considering fuel sales alone, though approximately 10 percent remain profitable once retail shop sales are factored in. The company is also considering reorganizing highway stations by adjusting the number of outlets and the mix of regulated versus premium fuels offered.
With fewer than five percent of Slovenians refueling along highways, Berger suggested that while transit travelers might still choose Slovenia for fuel, Croatia’s lower taxes could make its regulated prices more attractive. Board member Drago Kavšek emphasized that these measures are temporary and will be reassessed based on results and any future regulatory changes. He underscored Petrol’s willingness to engage in constructive dialogue with policymakers, which he said has been lacking so far.
These developments will also impact shareholders, including the state, which holds roughly one-third of Petrol’s shares. The company estimates that the new regulations could reduce group operating profit by up to 30 million euros this year. Petrol had earlier forecast revenues of 6.1 billion euros, EBITDA of 339 million euros, net profit of 177.8 million euros, and net investments of 150 million euros for 2024. However, Kavšek noted that the government’s pricing decision has significantly disrupted these plans.
Petrol has consistently argued that government taxes, which make up 60 percent of the final fuel price, are the primary cost driver. Since 2023, taxes have increased by 42 percent on petrol and 35 percent on diesel, while permitted margins have remained unchanged. Labor costs have also risen by 19 percent. According to Petrol, margins account for only 7 percent of the final price, whereas the fuel purchase price constitutes 33 percent. As a result, Petrol is effectively required to sell regulated fuel below its actual cost.
