Companies have passed on 40% of the increase in passenger fuel costs. Fuels make up 80% of the operating cost of a speedboat and 50% of a conventional one
A new third and… “pharmaceutical” increase in the price of passenger tickets will be provided by the shipping companies from July 1 by 7% – 8%. Unfortunately, increases in marine fuels have already reached 168% and will continue to rise.
According to executives in the coastal shipping industry, a passenger ferry on the Piraeus-Chania line needs about 33 tons of fuel per day to operate this route. Today’s tonne of “VLSFO” fuel, which is low in sulfur and used on ships without scrubbers, reached $ 1,264 a tonne, up from $ 480 last year.
It is indicative that someone who traveled to Syros last year with a financial ticket paid 32.5 euros, in June 2022 it reached 42.5 euros, while on July 1 it will cost 45.5 euros! It is noted that the shipping companies Due to the high fuel prices, they have raised the issue of rent adjustments on the routes of the one-year short sea shipping contracts and for which no fuel clause is provided under the relevant law.
These are a total of 42 ferry connections, while the total estimated cost will reach about 15 million euros. It is noted that since the beginning of April, the Ministry of Shipping has proceeded with the adjustment of the rents of the coastal shipping ships, which operate public service routes with multi-year contracts and in which, according to the relevant legislation, a fuel clause is provided. All barren lines are included in the Public Investment Program.
What are the proposals of the Association of Passenger Shipping Companies
Between them:
- Price ceiling which will have as a reference point the average fuel price of December 2021. The subsidy was proposed to be covered by resources coming from the EU funds. Estimated cost for the industry 12-18 million euros per month.
- Temporary reduction of VAT at the low rate of 6% until the average price of fuel returns to the corresponding rate of December 2021 and then maintaining it at the medium rate, which is 13%.
- Subsidy for employers ’employers’ contributions. Estimated aid expenditure for the whole sector 2 million euros per month.
- 30% increase in compensation for existing one-year public service service contracts. Estimated cost 2.3 million euros per month of implementation of the measure and until October 31, 2022.
- Enhancement of liquidity with immediate payment of 50 million euros due to companies from the execution of public service routes, the so-called barren lines.
- Temporary suspension of mandatory deductions or compensation of lost revenue based on the submission of documents until the return of fuel to the average price of December 2021. Estimated cost of about 4 million euros per month of implementation of the measure.
Companies have passed on 40% of the increase in passenger fuel costs. Fuels make up 80% of the operating cost of a speedboat and 50% of a conventional one.
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