Details of gas stations: Over 20% of illegal or adulterated fuel in Greece

More than 20% of the fuel traded in the Greek market today is estimated to be contraband or adulterated with solvents, with only 6%-7% of the country’s gas stations estimated to be guilty of delinquency, which has increased significantly recent years, depriving the state of valuable revenue.

This complaint was made today by the president of the Panhellenic Federation of Fuel Dealers (P.OPEK) and the Association of Petrol Dealers of Thessaloniki (EN.BE.TH), Themis Kiourtzis, according to which the cost of the delinquency related with fuel for the Greek state, mainly due to tax evasion, it is estimated that it amounts to approximately 700 million euros per year, without ruling out that it may even reach 1 billion euros. Revenues that, if they ended up in public coffers, he argued, could reduce taxes, to the benefit of consumers.

At the heart of the problem of delinquency, which began to manifest itself more strongly in Athens and then, especially in the last three years, in Thessaloniki and the other regions of the country, are, as he said, the “disturbed” input-output systems, which do not monitor all stages of the fuel supply chain and are targeted by offenders.

The fact that, in addition, the controls are not sufficient, allows the astute “shoplifters” to act undisturbed, as Mr. Kiourtzis claimed, during a joint press conference with the president of the Professional Chamber of Thessaloniki (ETH), Michalis Zorpidis and board members. The entry-exit system at petrol stations may have been made mandatory in urban centers in 2013 and the rest of the country in 2014, he said, but it is so volatile that it fails to capture offending behaviour.

According to the general secretary of P.O.P.E.K., Yiannis Mavrakis and the vice-president of EN.BE.Th, Christos Stavrakis, in the Greek market today there are approximately 35 different input-output systems, which are installed by private companies, instead of a single one, which facilitates delinquency. “This system should be made by the State, following the standards of “MyData” and the State should have its “keys”.

Today it is supposed that all data goes in real time to the General Secretariat of Information Systems. However, given that the system does not monitor all stages of the supply chain and that it is not immutable, these figures are in fact fictitious” said Mr. Mavrakis, while Mr. Stavrakis wondered how it is possible that today there are gas stations that sell in retail at a price lower than that at which they procure the fuel from the refineries, drawing the attention of consumers to the unnaturally low prices.

According to Mr. Kiourtzis, gas station owners, largely family businesses, although they often appear to be making a profit, in reality have very small profit margins. “Between 1/1/2021-1/6/2022, the price of crude oil increased by 100% and refined fuel by over 200%.

The refineries tripled their profit margin, while the gas station owners are on the defensive to save our businesses, with a profit margin of only 3%-4%” he said and argued that in the last decade 3000 gas stations-family businesses have closed or changed hands, passing to in many cases, either in subsidiaries of refineries, or in owners who operate illegally (of these gas stations, which have been affected in the last decade, a very significant percentage is located in Northern Greece, which is particularly affected, due to its proximity to countries where the cost of fuel is much lower, which many residents head to in order to fill up their tanks more cheaply.

Areas such as Kilkis or Serres are particularly affected, where 30% of gas stations are estimated to have closed in the last decade. In fact, gas station owners propose the institution of a “citizen’s card” for the regions of the country that are adjacent to such countries, so that citizens have an incentive to fill up within the borders.

According to Mr. Kiourtzis, fuel crime can be found in three areas: firstly, in the trafficking of illegal fuel, which is intended for export, but in the end never crosses the border, but returns to Greece and enters the tanks illegally, resulting in astute people profit from the taxes normally charged on fuel (1 euro/litre on petrol).

Secondly, adulteration with solvents such as toluene, which are very cheap – 200 euros/ton compared to 2200 euros/ton for gasoline – and are not detected in the fuel even if they are mixed in large quantities. And, thirdly, to theft in the input-output system of gas stations. By rigging the system, among other things, a smaller quantity is declared than what the consumer buys and the surplus is sold to another person, or a quantity is sold for billions, with the shrewd pocketing all the profit, without paying taxes._

RES-EMP

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