Gas stations: ‘The discount only makes us feel like we’re earning margins we don’t have’

Date:

Grupo Moure CEO Manel Montero says the 20 cents per liter support has been totally ineffective and prices will continue to rise

The government of Spain has announced that the discount of 20 cents per liter of fuel, which took effect on March 29, will be extended for a further three months, effective September 30, 2022. A measure taken by businessmen in the sector, owners of petrol stations, who argue that this measure is ineffective and burdens the accounts of SMEs.

For example, Grupo Moure CEO Manel Montero questions the Executive’s decision, saying it’s an “ineffective and unfortunate measure” that only helps create a sense that gas stations are earning margins they don’t.

“According to the latest government statements, what should have been the most important measure to curb inflation, a 20 cent bonus on fuel, is being extended. A measure that has proved completely ineffective for that purpose, as prices have continued to rise and all indications are that they will continue to rise,” warns Manel Montero, CEO of Grupo Moure.

In this sense, the expert, who classifies the discount as “failed and unfortunate”, warns of the risks of enforcing this decision that arose as a result of the national plan designed to reduce the economic impact of the war between Ukraine and Russia. “Similar measures applied in neighboring countries have similar inflationary results,” adding, “there is a sense that gas stations are earning margins that we really don’t have.” According to the manager of the gas station chain, the petrol price has already canceled out the impact of the discount.

This extraordinary measure was conceived as a shock plan when it came into force. Now, almost three months later, the data confirms that it is not enough to contain the escalation in prices in the medium and long term, as the price of petrol is already 20 cents more expensive than when the aid was approved.

“The published data confirms that cutting the price of fuel through a discount does not serve to stop an inflation spiral, demonstrating the great flaw of this measure, which harms the economy of thousands of gas stations. They are forced to advance money. that they don’t deserve,” continues Montero.

The escalation in prices will also continue according to the prediction of the president of the Spanish Confederation of Petrol Station Employers (CEEES), Nacho Rabadán, who expects to overcome the psychological barrier of three euros per liter this summer.

In practice, this means that filling the tank of a car with a capacity of 55 liters costs about 165 euros, so for a vehicle with a consumption of 7 liters per 100, driving 20,000 km per year costs about 4,200 euros, 350 euros per month.

The decline in demand and the application of the 20 cent bonus introduced by the administration are two of the causes that have pushed these establishments against the ropes. Compared to 2019, 492 companies in the sector have disappeared and 1,516 jobs have been destroyed, according to figures from the Spanish Confederation of Employers of Gas Stations CEEES.

For his part, Grupo Moure’s CEO has expressed concern about inflation, which sees fuel and food as the main drivers: “This makes it clear that measures need to be taken much higher up the value chain to lower profits or lower prices. as has already happened in the gas sector.

The price differences between the cheapest and the most expensive chains are striking. With diesel, the difference between the cheapest and most expensive chain is on average 21.5 cents per liter. At 95 petrol the difference is 20.2 cents.

For a vehicle with normal use and consumption, these differences mean a difference of more than €250 for both fuels, due to the lower consumption of diesel and the higher price of petrol.

The cheapest chains are those of distribution chains that want to attract customers to their branches through low prices. Low-cost chains with a self-service model or direct automatic are also among the cheapest.

To check prices and find the cheapest petrol in your nearest area or along the route you are going to travel, CLICK HERE to access the interactive map of the Hydrocarbons Geoportal.

You can also click THIS OTHER LINK if you want to download the App on your mobile from the official website of the Electronic Public Service. This application provides a search for gas stations on the map with their corresponding prices. It facilitates the analysis of the price distribution, segmented by province, type of fuel and/or distributor. The graphs are customizable and contain weather data, traffic incidents and other interesting data.

In addition, Google Maps, the mapping application owned by the popular American search engine, has a feature that allows users to share information about the price of the different types of fuel at each station. To use it, the user just needs to update the ‘app’ to the latest version and click on the ‘gas stations’ icon that appears at the top of the screen next to ‘restaurants’ or ‘supermarkets’. Below you can see how all gas station locations near your location are displayed.

Source: La Verdad

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Share post:

Subscribe

Popular

More like this
Related

Can lift 1000 tons – US: Giant crane clears after bridge collapse

After the bridge collapsed in the port of the...

15-year-old victim – attack with knife over a Gucci cap

A 15-year-old boy was threatened with a knife by...

Early start of the season: asparagus as competition for wild garlic

This year the vegetation in Upper Austria is two...