Petrol submitted a Petition for the review of the constitutionality and legality of the Decree on Setting Prices for Certain Petroleum products. The petition regards the Decree in which the Slovenian government set further price caps and further decreased margins by EUR 0.03 per litre. The regulation entered into force on Tuesday (5 December) and will be valid for three months.
This week Petrol’s share price was further under pressure due to unstable and unpredictable Government regulation. The Slovenian government deteriorated the terms again and decreased margins by EUR 0.03 per liter. The regulation entered into force on Tuesday (5 December) and will be valid for three months. A few days ago, we wrote about this Decree – its impact on margins in both Croatia & Slovenia and historical development. We emphasized that this might be the wrong time to do it, as November is 1st month of CPI reporting a MoM decrease, while the aforementioned caps on margins were implemented in the context of high inflation. You can read it here.
However, as a response to the Decree, Petrol submitted a Petition for the review of the constitutionality and legality of the Decree on Setting Prices for Certain Petroleum Products, Decree on Setting Prices for Certain Petroleum Products and Decree amending Decree on Setting Prices for Certain Petroleum Products and a Petition for temporary suspension of implementation (with a petition for an absolute-priority procedure). You can read the full submission of the petition here.
Petrol’s share price development
Source: InterCapital Research, Bloomberg
