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Fuels: the display of the average price is not necessary according to the AGCM

The AGCM comments on the regulation on the display of the average price of fuel to distributors, defining it as “not necessary”

January 27, 2023 – 7:00 p.m.

The 2023 it started with a marked increase in the cost of a liter of fuel. Indeed, since January 1, gasoline and diesel have shown a marked increase after a situation under control in the second half of last year, with costs that are definitely sustainable for motorists, at least compared to current levels. Everything revolves around the end of excise cut, a measure decided by the Draghi government and not renewed by the new Meloni government, in the midst of much controversy. The increase in fuel prices has given rise to numerous controversies which have led to modifications of the decree on fuel transparency and to the distributors’ strike on 25 and 26 January. On the issue of fuel prices, theintervention of the AGCM (Competition and Market Guarantor Authority) which ruled on theaverage price displayone of the main novelties of the latest version of the decree on fuels signed by the President of the Republic, Sergio Mattarella, on January 14.

WHAT THE AGCM SAYS ABOUT THE AVERAGE FUEL PRICE EXPOSURE

In these hours comes the position taken by Roberto Rustichelli, president of the AGCM, on the issue ofdisplay of average fuel prices. According to the Chairman of the Authority, this rule is to be considered as “not necessary” like me consumer benefitsseem uncertain” against, emphasizes Rustichelli, the risk of a possible “reduction of competitive stimulifor the market. In addition, according to the AGCM, the arithmetic average of regional prices would be unrepresentative of the real market context. Indeed, the same distributor is only in direct competition with distributors within a radius of a few kilometers and certainly not with another distributor hundreds of kilometers away but located within the borders of the same region. A regional average would not take this into account.underlines the AGCM, different market conditions that could develop within the same region. An area with a high population density and strong competition between distributors has completely different characteristics from a sparsely populated area with few distributors, even if the two areas are located in the same region or even in the same province.

FOR AGCM THERE IS A RISK OF CONFUSION WITH THE DOUBLE FUEL PRICE

Display an average regional fuel price as a benchmark for papermaker pricing risk of creating further confusion. On this aspect also, the point of view of the AGCM appears clear. According to Rustichelli: “Ithe planned double display panels, beyond the possible additional costs for merchants, could even mislead some consumersAccording to the Autorité, the display of an average price would also risk pushing the market towards aligned quotations, resulting in a counter-productive effect for competition and, ultimately, for consumers. Indeed, the AGCM welcomed the strengthening of price visibility measures.

WHERE DOES 2023 FUEL PRICE GROWTH COME FROM?

As originally planned, the fuel price issue revolves around the non-reduction of excise duties. The measure, which made it possible to reduce the cost of gasoline, diesel, LPG and methane, was not renewed by the Meloni government after the end of the period of validity set by the Draghi government. Concessions for motorists ended on December 31, 2022, with the restoration of ordinary excise duties. Automatically, therefore, the price per liter of petrol and diesel has risen again, again exceeding the danger levels. We remember excise duties on fuels have a significant impact on the final price at the pump. For all the details on this subject, you can consult thein-depth analysis of SicurAUTO.IT: excise duties on fuels in Italy.

WHAT IS THE PRICE OF FUEL TODAY IN ITALY AND HOW MUCH DO THE EXCISE TAXES MAKE

On the basis of the data provided by the Mise, it is possible to have a very precise idea of ​​the average fuel price and parent impact of excise duties on the final cost. Here are the details:

gas: average price of 1,829.47 euros per liter whose 728.40 euros excise duty And 329.90 euros VAT

diesel: average price of €1,875.10 per liter whose 617.40 euros excise duty And 338.13 euros VAT

LPG: average price of 797.85 euros per liter whose 147.27 euros excise duty And 143.87 euros VAT

The prices in question refer to surveys carried out on January 23, 2023 (data are averaged between January 16 and 22). Moreover, with regard to the cost of petrol and diesel, only the price of self-service is taken into account to determine the national average value communicated.

Source : Sicur Auto

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