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Drivers and petrol stations owners threaten to strike, maenwhile Papandreou gets ready for a trip

14 September 2010 / 16:09:12  GRReporter
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Greece could wake up to more than 5 million closed petrol stations on Wednesday. That is what the members of the Federation of petrol stations owners said after the meeting with the Ministry of Development officials. Bone of contention was the price limit that the Ministry has imposed earlier this week after the announcement of the next protest of carriers of fuel for public use.
 
The one week active strike of carriers of fuel for public use in late July this year not only blocked completely the supply of petrol and other goods throughout the country but led to speculative increase in fuel prices in many Greek municipalities. Following its bitter summer experience, the government has decided to go ahead of the events this time and to impose a ceiling on fuel prices before (and not knowing whether) the irreconcilable carries in the country go on an active strike again and stop working indefinitely. So far, their protest is limited to a traffic jam in the last right lane of the ring road of the capital without hindering the supply of fuel and other goods throughout the country.

The price ceiling per liter of unleaded petrol in the Attica region was set at 1.47 euros. The owners of petrol stations, however, argue that the price ceiling is lower even than the wholesale price at which the owners have purchased fuel at the beginning of the month. To support their claim, the Federation submitted to the journalists and the Ministry of Development copies of the invoices issued for the wholesale purchase of unleaded petrol, type 95, at prices between € 1.58 and € 1.61. “No one can oblige us to sell fuel at a loss, especially in times of crisis,” told reporters the President of the Federation Michalis Kiousis.

The protesters require the Ministry to carefully revise its decision on the ceiling of prices. They proposed three options. The first includes cancellation of the retail maximum price restriction per liter of petrol and the government to let the free market to determine the average fuel price in the crisis period. The second proposal is to impose a ceiling not only on retail but also on wholesale prices. The third option that the owners of petrol stations offered is adjustment of the price ceiling as a percentage of the wholesale prices that different suppliers offer.
 
Michalis Kiousis officially announced that if the government does not implement one of the three proposals of the Federation, 5000 petrol stations will be forced to close from Wednesday, September 15 to Sunday, September 19, when the price ceiling expires. Retailers will close till the end of the restriction period, because they are subject to criminal liability and penalties if they sell above the prices determined by the government. Currently, a total of 1100 petrol stations are operating in the region of Attica. Subject to the restriction are only 400 that were able to buy cheaper fuel than their colleagues. The other 700 have to decide whether to sell at a loss or to close until the price restriction expires.
 
The Federation submitted their requirements to the General Secretary of the Trade Department at the Ministry Stefanos Komninos. He in turn reported to the Deputy Minister Dinos Rovlias, who then presented the problem to the new Minister of Development and former Minister of Citizen Protection Michalis Hrisokoidis. Hrisokoidis has to decide whether the ceiling on petrol prices will be kept or not and under what conditions. This decision will determine whether the petrol stations owners will go on a strike or will continue to operate properly.

The government has to solve not only these problems. It has to bring under control the second front, namely the discontent of drivers in the country. If passive strike of carriers does not turn into an active one the measure limiting the retail fuel price will be meaningless and the problem of the petrol stations owners will be resolved. If drivers of trucks and tanks for public use, however, decide to go on strike again and to stop working, the price ceiling of petrol will prove to be the necessary measure to prevent speculation on fuel prices.
 
The government of George Papandreou has to solve an equation of too many unknowns. The Prime Minister convened all of his key ministers on extraordinary meeting on this occasion – the Minister of Economy George Papakonstantinou, the Minister of Development Michalis Hrisokoidis, the Minister of Transport and Infrastructure Dimitrios Reppas, the Minister of the Interior and Regional Development Giannis Ragousis, the Minister of Energy and Environment Tina Birbili, the Minister of Employment Luca Katseli (former Minister of Economy) and the Minister of Health Andreas Loverdos (former Minister of Labour and Social Security). The ministers discussed the current issues of fuel prices and transport as well as the gap in this year revenue and the preparation of the 2011 budget. The Financial Minister Papakonstantinou will fly to London after the meeting. It is the starting point of his three-day promotional tour to find key investors in the Greek economy. The Prime Minister George Papandreou will leave for an official visit to Brussels first and then to the U.S.A. According to his press centre, he would return to the country after no more than ten days.

 

Tags: EconomyProtestsDriversPetrol stations ownersCeilingFuel
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