Some have asked the bank for funding to cover that extra expense, which the Treasury pays back to them two weeks later.
All Spanish drivers have benefited from a bonus of 20 cents per liter of fuel since the government’s anti-crisis plan came into effect on April 1 and which, after the approved three-month validity, was extended until December 31 this year. Since April 1, the gas stations in Spain have to advance the money that is debited from their own pockets – the so-called treasury – and wait for these amounts to be paid to them by the treasury as soon as possible.
These advances are very large because of the large amount of fuel that gas stations buy each month. In particular, the Spanish Confederation of Petrol Station Employers (CEEES) assures them that they have to advance an average of more than 1,000 euros per day, or what is the same, about 33,000 euros per month. Amounts that for many presuppose an “unaffordable” expense for which they have to apply for financing from the banks, with the corresponding interest.
Nacho Rabadán, CEO of CEEES, explains to this newspaper that they “confuse oil companies with gas stations” and that the majority – especially 70% of their employees – are family SMEs. “Nobody would think of asking SMEs in any other sector for this economic effort. It means selling at a loss and getting your money back a month later,” he says.
And that, he admits, the officials are doing a “great job” and getting the Treasury to pay them the advance “within 10 to 14 days”, but if the administration collapses or now in the summer they have less staff, it could be that the advance is paid in August in the month of October. “The government’s decree has been so poorly executed that it even stipulates that the administration can pay us in 45 days,” something that would destroy his treasury.
“It’s the perfect storm,” laments Manuel Jiménez, president of Aesae (National Association of Automatic Service Stations), as the “problem” of advance money is added that fuel does not cost the same as a year ago. In particular, fuel cost last July 34.3% more than a year earlier. INE data indicates that despite the 2.1% drop from June to July, they have become 27.1% more expensive so far this year.
Faced with this situation, some ‘cheap’ gas stations have had to close, although Jiménez assures they still have no data to know how deep the crisis is in the sector. “Advance payments reduce the liquidity of companies. We are in a tense liquidity situation and have to apply for financing from the bank,” said the association’s president.
And these advances also increase the administrative burden for service stations, which have to send invoices and specific data to the Treasury and, if necessary, to the National Commission for Markets and Competition (CNMC). Nacho Rabadán criticizes that these administrative burdens are sometimes “very heavy” because they have forced some companies to hire a person to specifically handle all the paperwork or one of the staff to take charge, at a time of year that is usually more workload for car journeys on holiday.
Faced with this scenario of rising costs, the ‘low cost’ association causes them to receive a lot of calls from some of their gas stations that want to become automatic. “In this tight situation, we are trying to switch to the most economical model,” said Jiménez, who indicates that after fuel, personnel expenditures are the most significant for these companies.
Since the entry into force of the 20 cent bonus, oil prices have fallen (the peak was reached in mid-May when a barrel of Brendt traded for $123 compared to the current 96). Therefore, the fuel price, although less rapidly, has also fallen. Petrol peaked at 2.15 euros per liter on June 17, while diesel rose to 2.10 euros on June 23. On the other hand, this Monday the liter of petrol stood at 1.81 euros on average, while diesel was paid at 1.80.
Source: La Verdad
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.
