The Competition Commission has identified distortions and a lack of competition at the first stage of the fuel supply chain \u2013 the refineries. Of the five measures it proposes to foster effective competition in the petroleum products market, four target this sector and are described as \u201cabsolutely necessary.\u201d<\/p>\n
In contrast, the commission sees no need for intervention in the midstream segment, noting that competition among trading companies is functioning adequately, with profit margins either marginally positive or even negative.<\/p>\n
Following the release of its initial opinion report last August and the completion of a public consultation, the commission on Wednesday announced specific proposals aimed at strengthening competition in the fuel market. These will be open for further consultation until September 26, 2025.<\/p>\n
The commission notes that the refining market operates under \u201cduopoly conditions\u201d with a high degree of concentration, as the key pricing factors for domestic fuel sales are common to both major players, Helleniq Energy and Motor Oil.<\/p>\n
The first proposed measure \u2013 previously recommended but not implemented \u2013 is the creation of a central body to maintain strategic fuel reserves. Supervised by market watchdog RAAEY, this body would hold safety stocks on behalf of market participants at a fixed price, enabling trading companies to import fuel without incurring additional stockholding costs.<\/p>\n
The second measure calls for the registration, oversight and regulation of storage facilities to facilitate imports and promote competition. The third proposal seeks to end exclusivity clauses in fuel storage and service agreements.<\/p>\n
To further improve market dynamics, the commission also suggests limiting transparency around refinery pricing to trading companies, arguing that excessive price disclosure may hinder competition.<\/p>\n
The fifth and final measure targets the retail sector, recommending increased price transparency through digital tools \u2013 a proposal the commission has made in the past.<\/p>\n","protected":false},"excerpt":{"rendered":"The Competition Commission has identified distortions and a lack of competition at the first stage of the fuel…\n","protected":false},"author":3,"featured_media":61309,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[64,79,5495,67,132,68],"class_list":{"0":"post-61308","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-economy","10":"tag-energy","11":"tag-united-states","12":"tag-unitedstates","13":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/114843979073238785","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/61308","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=61308"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/61308\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/61309"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=61308"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=61308"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=61308"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}