Fuel prices are rising and rising, but profit margins for the refineries of the mineral oil companies have risen even higher. In a recent report, the Federal Competition Authority (BWB) writes that the number has tripled since the start of the war in Ukraine. She sees a “decoupling” in the domestic fuel market – so the increased fuel prices can’t just be explained by higher costs. The opposition calls for measures against the “crisis freeriders”.
As early as March, Vice-Chancellor Werner Kogler (Greens) suspected the oil companies were “making a fortune at the expense of the people” and called the BWB on the spot because of possible market failure. The companies should remove the suspicion themselves, the cartel watchdogs now explain in their report. “It’s up to the oil companies to prove that the development of gross refining margins does not translate into corporate profits,” it says dryly. The cabinet expects an explanation of how prices are determined.
“Responding to crisis freeriders”
The opposition expects more from the government. SPÖ deputy club president Jörg Leichtfried calls on Economic Affairs Minister Martin Kocher (ÖVP) to regulate fuel prices by law. Kocher has a duty to “respond to these crisis freeriders,” Leichtfried said in a broadcast. There should also be a price cap for electricity, gas, fuel and rent and “skimming off excess profits”.
The federal government should “no longer observe” and play with the times, emphasizes NEOS business spokesman Gerald Loacker. It is not enough just to show that something is going terribly wrong in the development of fuel prices. A functioning market requires functioning supervision. Under the price law, Minister Kocher must limit price increases as the market develops.
Nehammer against fuel price ceiling
The motorists’ club ARBÖ also finds the pricing of fuel “incomprehensible”. The impression is created that “Austrian drivers” pay someone much more than necessary. Politicians must intervene and take countermeasures.” Chancellor Karl Nehammer (ÖVP) again ruled out a price ceiling in the National Council on Friday. So far this has not proven itself in the fight against inflation in the countries that have tried it.
FPÖ leader Herbert Kickl demands a “conclusive and cohesive concept for the coming months”. He expects Parliament’s main committee to release more emergency oil reserves next week. “It would be the third time that this ‘iron reserve’ has been touched,” Kickl said. At this rate, the reserves for the winter would be exhausted – “and then what happens?” Kickl therefore demands a government strategy rather than “continuous muddle”.
Price increase “inexplicable”
The BWB’s calculations show that in the first half of June, compared to the time before the outbreak of the war in Ukraine on February 24, fuel prices, which had risen by approximately 36 cents per liter of diesel and 41 cents per petrol, “decoupled” from the price of crude oil. These only rose by a little more than about 22 cents per litre. According to the report, the sharper increase in fuel prices cannot be explained by the increase in the price of crude oil.
The price increase has tripled gross refining margins. These form the basis of the profits of the refineries of OMV, ENI, Shell, BP and JET, from which, according to the BWB, “other moderately increased costs should be deducted”.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
