Portugal’s petrol retailers have criticised the new ‘low-cost fuel’ laws imposed by the government on a formerly free market, saying that the rules are a ‘step backwards’ and are detrimental to motorists and to the environment.
The Portuguese Association of Oil Companies, APETRO, which speaks for the ‘big four’- Galp, Repsol, Cepsa and BP claims that there are no winners, some losers and losses have been incurred to implement the legislation.
The association says that there is now a limited supply of fuel types in a less differentiated market and that the environment will suffer due to "lower energy efficiency, an increase in greenhouse gases and poorer air quality," caused by an increase in the purchase of low-cost fuels.
APETRO deeply regrets what it sees as a setback to modern fuel development and retailing and that the companies affected are now forced to reduce fuel types on offer, many of which have been the result of heavy investment in research and development. Competition between operators is reduced which is against the policies within the European Union.
Galp stands alone as the only one of the ‘big four’ which has kept normal unleaded 95, the others have scrapped this category and have left on sale their relatively expensive premium grade fuels, alongside the low-cost one.
The association disagrees with government statements and those from Deco which gave low-cost fuels a performance-based ‘thumbs up’ and insist that low-cost fuels will dampen engine performance and reduce engine life. Also that the absence of some additives will cause increase consumption, in complete contradiction to the intention of the government.
With lower fuel efficiency there will be more CO2 and other greenhouse gasses pumped into the atmosphere as consumption per kilometre rises, claim the fuel suppliers.
The average savings for those buying the new low-cost fuels was just 2 cents per litre on changeover day last Thursday when compared with the now unavailable unleaded 95.
The price difference between low-cost and the current premium fuels now on sale is around 8 cents per litre pushing many drivers into choosing the less efficient and hence more polluting low-cost fuels, according to the retailers.
The energy minister said last Friday that the first data in on the fuel companies reaction was a saving of three cents, but this was between low-cost fuel and unleaded 95 which is no longer on sale, except at Galp.
The minister added that he hoped to be able to "go further to the benefit of consumers," but did not expand on how he sought to do this, nor has he commented on the absence of unleaded 95, the consumer’s favourite.
Comments
And although Lisbon has banned vehicles over 10 years old from entering the city (because they produce more filthy gases), the use of this new low-grade fuel will probably reverse the benefit.
I agree with liveaboard, that the premium fuels are hyped by bigoil beyond their value.
is that what deflation means
I have no doubt that their premium products do have some effect, but I seriously doubt that the savings equal the extra cost of them.