Fuels: Assopetroli says Eni’s prices are unworkable for us, with a risk of market distortions
Gallitelli: From distribution to transport, the supply chain is on high alert
(Il Sole 24 Ore Radiocor) - Eni’s decision to cap fuel prices “certainly benefits consumers but risks having distorting effects on our supply chain”: “That is why we will assess its impact” and “we will seek dialogue with the Government” because “it is important to highlight the potential side effects of such an initiative”. This was stated on Radiocor by the general secretary of Assopetroli-Assoenergia, Sebastiano Gallitelli, who emphasised “the concern and alarm” of the 12,000 independent members, who account for 50 per cent of petrol stations on Italian roads. Assopetroli has called an emergency meeting of its executive committee for tomorrow to discuss the effects of Eni’s price cap, which comes into force tomorrow for an initial period of 30 days and – as announced by the oil group – already provides for a possible “extension until the end of the year, depending on market trends and supply conditions”. The maximum price set by Eni is 2.19 euros per litre for diesel and 1.99 euros per litre for petrol. According to the Mimit Observatory, yesterday’s average self-service price across the national network was €2.158 per litre for petrol (€2.252 on motorways) and €2.357 per litre for diesel (€2.439 on motorways).
Following the committee meeting, explains the Secretary-General of Assopetroli, we will adopt an official position.
“Eni’s initiative,” says Gallitelli, “has an impact on operators like us who cannot match that price level. It is very clear that these terms are not viable for our operators because our supply chain faces higher procurement costs than those set by Eni and, therefore, under these conditions, our operators end up making a loss on every litre sold.” In addition to this, Assopetroli points out, consideration must be given to “the effects on the hauliers we supply: if we cannot afford those terms, it is clear that there is an entire production supply chain that cannot meet them either”.
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