Testing times for the Greek market due prices and tampering

With rising energy costs, drivers in Greece have complained about not getting the fuel they've paid for. What are retailers doing to prevent the under selling of fuel products?

In the last year, Greece has experienced one of the highest rises in energy prices in the region with an annual increase of 61%, the fifth highest rate in the eurozone, according to the latest Eurostat report. Amidst a fuel shortage triggered by the EU ban on Russian energy imports, the nation’s dependence on fossil fuels production and its heavy taxation have resulted in the price of gasoline to reach record numbers, with an increase of 36.6% for fuels and lubricants in just one year.

At the same time, drivers have reported several times that they do not receive the exact liters they buy while refuelling, which increases distrust in fuel retailers in an already difficult context. Companies are trying to tackle the issue and ensure their customers are protected while at the pump. In addition, the national government has also announced a series of measures to soften the impact of high prices on the most vulnerable parts of society.

How fuel retailers are fighting fuel tampering

EKO has launched a new “Guarantee Program” to control the quality and quantity of its fuel, said Giannis Miaoulis, Marketing Director, in a recent interview with local news site Accesories.autotriti. In collaboration with the National Technical University of Athens, the initiative looks to ensure the quantity and quality of its fuel from the refinery to the customer's tank through six different control points. 

All checks are divided into two sections – facility controls and station controls. The former includes continuous quality analysis of fuels in the refinery, sampling controls on all types of EKO fuels and monitoring the routes of transport tanks with GPS systems. For stations, the brand checks and seals pumps with quantity assurance tape, runs control programs in collaboration with mobile units of the Fuel Technology Laboratory of NTUA and carries out unannounced quantitative checks by conventional vehicles.

The ELINOIL brand has implemented a similar system to reinforce its trust with customers through its “Quality Commitment” program to control the company’s fuels and lubricants. The service certifies that the right quantity of fuel is delivered in full thanks to a GPS system and level metres installed in the controlled tankers of the brand’s fleet. These are daily monitors to control their progress and the quantities they deliver. The program also features a series of evaluations for its own vehicles, pumps and deliveries for possible tampered or deficient equipment. Bureau Veritas, one of the largest petroleum analysis laboratories in Greece, is included in this process. The independent certification body carries out sample checks and analyses on ELINOIL products at all stages of the supply chain.

Price peak: The underlying issue that still lingers

Regarding the rise of fuel prices, the Greek Government announced the extension of its “Fuel Pass” initiative last week, a subsidy that ranges from 45 to 100 euro and is set to reach 3 million drivers in the country. The program will run for three extra months and it’s scheduled to be launched at the end of July.

The exact sum that is returned to the driver will depend on three factors: Type of vehicle, motorcycle vs car; place of residence, mainland or the Greek islands; and how beneficiaries choose to receive the subsidy, via bank account or smartphone. Whoever chooses to receive the Fuel Pass on a virtual card on their smartphone will get an extra €15. 

To apply for the Fuel Pass, drivers will need to access the official platform with their Taxisnet codes. The official form includes information such as vehicle data, mobile number, e-mail address and bank number. For virtual card and smartphone users, any service station with a POS system will be able to redeem the amount solicited by the customer.

Greece’s fuel retail market is composed of a total of 5,500 service stations, all operated by a mix of international and local brands as well as family-owned sites. EKO currently manages the largest network of petrol stations, operating 900 branded forecourts distribuited throughout the country. The second largest network belongs to Hellenic Fuels, with 816 sites under the bp brand, something similar for the third spot occupied by Coral with 761 Shell-branded locations. The fourth fuel retail player is Aegean Oil currently operating a total of 700 points of sale across the Greek territory, followed by Revoil with approximately 500 branded stations, and last is Jetoil with a network composed of near 90 locations. The rest of the market is completed by smaller brands and stations scattered throughout rural territories.