SaS Suggests Reducing Excise on Motor Fuels, Calls for Fast-track Procedure

Bratislava, 10 March (TASR) - The opposition Freedom and Solidarity (SaS) party has proposed that excise duty on motor fuels should be temporarily reduced to the minimum level set by EU regulations, SaS MPs Marian Viskupic and Karol Galek told a briefing on Tuesday, adding that they've urged the government to take ownership of the bill submitted to Parliament and request a fast-track legislative procedure for debating it. The proposed amendment suggests reducing the tax on petrol from the current €514 to €359 per 1,000 litres, and the tax on diesel from €368 to the minimum possible amount of €330 per 1,000 litres. "These rates precisely mirror the minimum levels set by Council Directive 2003/96/EC, thereby fully complying with EU law," stated Viskupic. The price of petrol could thus be reduced by 18 cents per litre and diesel by 5 cents per litre. According to Viskupic, about 70 million litres of petrol are sold in Slovakia each month, so the measure would reduce state revenues by some €10 million. However, this shortfall would be offset by higher excise duty and VAT revenues from the greater volumes of fuel sold if prices were lower, as Slovaks would stop refuelling abroad and foreign drivers passing through the country would start filling up in Slovakia. Fuel sales would need to increase by 20 percent, which is a realistic target, said Viskupic. Galek warned that fuel prices could rise even more sharply in the coming weeks in response to the war in the Middle East, as around a fifth of global oil production is transported through the Straits of Hormuz. "The market has already reacted, with the price surging from about 70 USD per barrel to around 90 USD today. If the conflict doesn't calm down, pressure for further price increases will continue," said Galek. jrg/df