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Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for measure SI-2022-25/2840 – measures in Slovenia

Setting prices for certain petroleum products

Oblikovanje cen določenih naftnih proizvodo

Country Slovenia , applies nationwide
Time period Temporary, 16 June 2022 – 15 June 2023
Context War in Ukraine
Type Legislations or other statutory regulations
Category Responses to inflation
– Support for fuel expenses
Author Maja Breznik (University of Ljubljana) and Eurofound
Measure added 12 September 2022 (updated 09 October 2022)

Background information

Following the price increases, the government decided to regulate prices for certain petroleum products. Introduced on 16 June 2022, the setting mechanism searches the balance between the state, traders, and consumers, who should, according to the official announcement, evenly carry the burden of price increases. The government extended lower excise duty, adopted in January and again in April 2022, and, at the same time, regulated the trade margins on certain petroleum products in some zones. From 16 June onwards, the regulation of trade margins will be in force for the next 12 months and will apply to all gas stations outside highway and expressway areas.

Content of measure

By adopting the Decree on setting prices for certain petroleum products , the government regulated the trade margins of two petroleum products: 98-octane unleaded fuel and diesel. The value of the two products is calculated every two weeks and is mandatory for all distributors except those serving in highway and expressway areas. The trade margin is set at €0.0983 for diesel and €0.0994 for 98-octane unleaded fuel. The regulation will be in force until 21 June 2023. For the benefit of employees, another measure raised untaxed travel allowances by 16%, to €0.21 per kilometre. However, the maximum sum should not surpass €140 a month per employee.

The government webpage on crisis measures includes an app [“Oil product price finder”] (https://goriva.si/) to review fuel prices by location. The app enables consumers to control price increases and compare various fuel distributors.

Use of measure

Unknown.

Target groups

Workers Businesses Citizens
Does not apply to workers Does not apply to businesses Applies to all citizens

Actors and funding

Actors Funding
National government
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role No involvement No involvement
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • No involvement
  • Main level of involvement: N/A

Involvement

The social partners were not involved in the design of measures.

Views and reactions

The transport section of the Chamber of Craft and Small Business of Slovenia (OZG) protested against the discriminatory price setting. Freight hauliers by road required the equal price of diesel in highway and expressway areas as elsewhere. On 22 June 2022, they met with the minister of infrastructure and came to an agreement. The state announced the withdrawal of the environmental tax on diesel sold in those areas for hauliers. At the same time, the minister appealed to fuel traders to adjust the trade margin (not regulated on highways and expressways) in order to reach a comparable retail price everywhere.

The transport section of OZG also opened the problem of deals between big transport companies and fuel traders, which enable the former access to cheaper fuel than their competitors. Such arrangements put small companies in a disadvantaged position. The minister stressed that this is the problem of intercompany relations and the government has no authority in this domain.

No views are available from trade unions.

Sources

  • 16 June 2022: Decree on setting prices for certain petroleum products (Uredba o oblikovanju cen določenih naftnih derivatov (www.pisrs.si)
  • 30 August 2022: Decree on the tax treatment of reimbursement of costs and other income from employment (Uredba o davčni obravnavi povračil stroškov in drugih dohodkov iz delovnega razmerja (www.pisrs.si)

Citation

Eurofound (2022), Setting prices for certain petroleum products, measure SI-2022-25/2840 (measures in Slovenia), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/SI-2022-25_2840.html

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