The latest rise in fuel prices has already wiped out the previous discount, placing a renewed burden on consumers and businesses, said Spyros Michalakakis, former president and CEO of BP Greece, speaking on «Naftemporiki» TV.
According to the experienced energy market executive, the temporary decline in prices failed to provide real and lasting relief. The subsequent increases quickly offset any benefits, with the result that the pump price remains at particularly high levels.
Mr. Michalakakis pointed out that international developments and fluctuations in oil prices directly affect the domestic market. However, taxes continue to play a decisive role in the final cost, as they account for a large portion of the retail price of fuel.
Persistently high prices are putting additional strain on household budgets as well as on business operating costs. The impact is particularly severe on transportation, tourism, agricultural production, and regions where car use is a daily necessity rather than a choice.
The former head of BP has repeatedly argued that temporary measures and limited discounts cannot address the root of the problem. Instead, he believes it is necessary to implement more substantial and permanent measures, including a reduction in excise taxes and strengthened oversight at all stages of price formation.
His latest statement brings back into focus the question of whether the price reductions seen in the wholesale market are passed on to consumers in a timely manner and in full, as well as whether current tax policy allows for any meaningful reduction in prices at the pump.
At a time when energy costs remain one of the most significant sources of inflation, Spyros Michalakakis warns that without structural reforms, any temporary price drop will continue to be wiped out in no time by the next price hike.
