Petrol reports profit decline amid Slovenian fuel regulation issues

Petrol reported a significant decline in net profit for the first half of the year, falling 24 percent to 57.4 million euros, despite a 12 percent increase in revenue to 3.3 billion euros. The company attributed the drop in profitability to an inadequate regulatory framework in Slovenia regarding fuel and derivative pricing.

Management highlighted that the current regulations prevent the company from responding effectively to volatile global market conditions. A specific impact was noted in March, where geopolitical tensions in the Middle East and rising energy prices led to a 27.5 million euro loss in fuel sales within Slovenia. Petrol noted that Slovenia is one of only two EU countries, alongside Croatia, that maintains regulated fuel prices, with average trader margins in the EU being approximately twice as high as those in Slovenia.

The company warned that if the current business model remains unsustainable due to these regulations, it could lead to restrictions on fuel availability or the closure of individual sales points.