PM challenges drivers to expose greedy fuel suppliers

CUTS || Fuel companies have been accused of ‘gobbling up’ the government’s carefully-targetted tax cuts before they reach the pumps.

Monday should have seen marked falls in the prices of both petrol and diesel.

But to the dismay of hundreds of thousands of drivers who had waited all weekend to refill their tanks, the falls were a long way short of expectations.

Prime minister António Costa is described as “irritated” and has “thrown ASAE (food and economic safety authority) at the sector” to ensure suppliers fall in line.

He has also tweeted that drivers “should look at their receipts to guarantee” the fuel they have purchased reflects the promised discount.

In other words, drivers themselves are encouraged to denounce fuel stations charging over the odds (see below for email address).

Explain reports, the situation is unlikely to be fully-controlled before the end of the month.

This is because the government doesn’t yet have a legal mechanism allowing it to set ‘maximum margins for commercialisation’.

That mechanism is in the pipeline, however. Law 69-A/2021 will come into effect at the end of May.

In the meantime, it is really a question of ‘choose your pumps’.

Difference between government’s promise and prices charged

The difference between the government’s promise and prices charged varies across the board but rounds out at around 40% less.

PM Costa tweeted on Monday: “The reduction in ISP to a value equivalent to a reduction in IVA of 13% translates today into a discount of 15.5 cents for petrol, and 14.2 cents for diesel.”

Correio da Manhã tabloid set to work verifying these values, finding GALP had reduced its cheapest petrol (95) by 11.5 cents, and diesel by 10.2 cents; BP brought down petrol by 10 cents, diesel by 12 cents; Repsol reduced petrol by 11 cents, diesel by 10.

No major brand could be found offering the reductions promised by the government.

With ASAE now charged with bringing fuel companies into line, CM suggests they could be liable to criminal charges of speculation.

GALP declares irst quarter pro its of €155 million

Albeit not the best time to declare bumper profits, a communiqué on Tuesday from the Markets Securities Commission (CMVM) showed GALP Energia registered €155 million in liquid profit for the first quarter of 2022, compared with €26 million for the same period last year.

That said, the company completed the first quarter of the year with a liquid debt of €2.39 billion compared to debt of €1.55 billion for the same period in 2021.