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Will there be heating fuel in winter?

11 October 2010 / 16:10:08  GRReporter
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As expected, the end of the carefree summer brought the heating fuel issue in addition to the strikes and unrest. The Gas Station Owners Federation announced that retail distributors will not be able to provide the necessary quantities of heating fuel, if the state requires them to pay in advance the excise duty on the diesel fuel they purchase. This has been done until now, but increased taxes and lower market turnover during the new heating season have opressed gas stations owners who are unable to pay the required amounts.

"We have to pay in advance € 481 for each 1000 liters of fuel purchased. We informed the Ministry of Finance still in May 2010 that we are not able to make the prepayment of the due tax this year," said especially for GRReporter the president of the Federation Michalis Kiousis. He explained that the Ministry has ignored their warning and there is no solution yet five days before the beginning of the distribution activity. The problem is that there are no liquid funds due to decreased consumption and increased operating costs, and retailers are not able to pay for the new supplies.
 
The heating season in Greece starts on October 15 every year and the distribution of heating fuel starts then accordingly. The country has no developed system for central heating and the distribution networks of natural gas do not cover the majority of cities and villages in the country. Therefore, most of the households use local heating systems fueled mostly with oil. This year, though, it may be that the heating fuel will not be delivered to the end users on time unless the representatives of the Gas Station Owners Federation of do not come into agreement with the Ministry of Finance.

Meanwhile, the sharp drop in temperatures in the country has caused more anxiety as far as the disagreement between the government and fuel traders is concerned. The Deputy Minister of Finance Dimitris Katselas agreed to meet the representatives of the Federation in order to solve the problem. While the government and traders argue where the money for the pending fuel bills should come from temperatures in northern Greece have fallen substantially and are in the range between five and fifteen degrees Celsius.

An employee in a gas station in the northern suburbs of Athens explained to GRReporter that there is another problem. The state has not refunded the excise duty on fuel for transport. Initially, this excise duty was withhold for one week and then it was returned to the dealers. Since the beginning of the year, however, the tax return is delayed by two or even three months, which further impedes the retailers. It is expected the outcome of the meeting between the Deputy Minister Dimitris Katselas and fuel traders to be announced to the end of the day or tomorrow morning.

Tags: EconomyMarketsHeating fuel
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