The Spanish Confederation of Service Station Entrepreneurs has warned that the current price of fuel puts at risk the viability of many companies in the sector and has demanded urgent fiscal measures to curb the economic impact of the escalation of costs.
The employers' association states in a communiqué that the Administration is obtaining extra revenue through fuel VAT. According to their calculations, the State would be collecting about 7 cents more per liter of fuel and, if March ended without new increases, that extraordinary revenue could reach 180 million euros just for this item.
The employers' association denies profits for the price increase
The CEEES rejects accusations that service stations are benefiting from the rising cost of fuels. It assures that profit margins have been reduced and that many companies are absorbing part of the cost increase in order not to lose customers.
According to the business organization, many stations operate at the limit of profitability. It also warns that the cost of filling a tanker truck has increased, a situation that forces numerous companies to seek additional financing to maintain the necessary stock.
"It is unacceptable that the Administration makes money at the expense of the sacrifice of the citizens and the viability of our companies" - Spanish Confederation of Service Station Entrepreneurs
Drop in demand and less use of the vehicle
The employers' association also warns of a fall in fuel demand due to current prices. In its opinion, the level reached is leading many consumers to reduce vehicle use and to limit their travel.
"The situation shows clear signs of demand destruction" - Spanish Confederation of Service Station Entrepreneurs
The sector warns that the rising cost of fuel could end up causing an economic paralysis if immediate measures are not adopted.
Request for a 10% VAT and tax reduction
Among the proposals put forward by CEEES is the application of a reduced VAT of 10% to automotive fuels. The organization also asks for a reduction of the Special Hydrocarbon Tax.
The employers' association argues that these measures could be partly compensated by the increase in revenue that VAT itself is already generating due to the rise in prices.
The organization positively values the measures that the Government is studying to help especially affected groups, such as farmers and transporters, although it recalls that many small and medium-sized companies that manage service stations are also suffering the consequences of the rising price of oil.