Exclusive Stringer Dispatch: Why are Spanish gas stations planning to sue the government?
CGTN, 02 May 2022
For more:
https://www.cgtn.com/video
The ongoing pandemic and the Russia-Ukraine conflict have led to a spike in energy prices in European countries. To address the issue, the Spanish government has enacted a new policy, effective from April 1 to June 30, subject to a possible extension. The policy requires gas stations to reduce the price of gas and diesel by 20 cents per liter, of which 15 cents is to be reimbursed by the government and 5 cents by the oil companies.
Spanish consumers are delighted with the discount, but gas station owners are not much excited because of the slow reimbursements. Most significantly, stations are to be compensated based on 2021 sales, which were substantially lower due to COVID travel restrictions, meaning that the promised reimbursements are unlikely to match current volumes. Moreover, even though gross profit now stands are just 10 cents per liter, they will still be required to advance the 20 cents or face the real possibility that customers will not patronize stations that fail to offer the discount.
According to the Spanish Confederation of Service Station Entrepreneurs (CEEES), the situation worsened when domestic travel doubled during the Easter holiday. Consequently, more than 350 stations have closed temporarily rather than endure excessive losses, a threefold increase since the start of April. Between 3,000 and 4,000 stations are now at risk of permanent closure.
CGTN Stringer in Spain interviewed CEEES CEO Nacho Rabadan Rodriguez and Alicia Orgaz, a gas station owner in La Guardia, near Madrid, to hear how the new "discount policy" has affected their businesses.
Subscribe to us on YouTube: https://goo.gl/lP12gA
Download our APP on Apple Store (iOS): https://itunes.apple.com/us/app/cctvnews-app/id922456579?l=zh&ls=1&mt=8
Download our APP on Google Play (Android): https://play.google.com/store/apps/details?id=com.imib.cctv
https://www.cgtn.com/video
The ongoing pandemic and the Russia-Ukraine conflict have led to a spike in energy prices in European countries. To address the issue, the Spanish government has enacted a new policy, effective from April 1 to June 30, subject to a possible extension. The policy requires gas stations to reduce the price of gas and diesel by 20 cents per liter, of which 15 cents is to be reimbursed by the government and 5 cents by the oil companies.
Spanish consumers are delighted with the discount, but gas station owners are not much excited because of the slow reimbursements. Most significantly, stations are to be compensated based on 2021 sales, which were substantially lower due to COVID travel restrictions, meaning that the promised reimbursements are unlikely to match current volumes. Moreover, even though gross profit now stands are just 10 cents per liter, they will still be required to advance the 20 cents or face the real possibility that customers will not patronize stations that fail to offer the discount.
According to the Spanish Confederation of Service Station Entrepreneurs (CEEES), the situation worsened when domestic travel doubled during the Easter holiday. Consequently, more than 350 stations have closed temporarily rather than endure excessive losses, a threefold increase since the start of April. Between 3,000 and 4,000 stations are now at risk of permanent closure.
CGTN Stringer in Spain interviewed CEEES CEO Nacho Rabadan Rodriguez and Alicia Orgaz, a gas station owner in La Guardia, near Madrid, to hear how the new "discount policy" has affected their businesses.
Subscribe to us on YouTube: https://goo.gl/lP12gA
Download our APP on Apple Store (iOS): https://itunes.apple.com/us/app/cctvnews-app/id922456579?l=zh&ls=1&mt=8
Download our APP on Google Play (Android): https://play.google.com/store/apps/details?id=com.imib.cctv
