Galp cuts fuel prices in line with international market listings

 In Fuel, News, Oil and Gas

The Portuguese energy company Galp says it has “fully” reflected the drop in fuel prices and that its profit margin has not gone up.

This was after the government had said that the price of diesel and petrol has fallen less than expected.
However, Galp insists that it fully reflected the fall in the listed price of petrol and diesel on the international markets last week in the cost of fuel it sold at service stations in Portugal, and said it did not make more money at the pumps, even though prices fell on Monday by less than had been expected.
On Friday, the government was expecting a fall in the price of diesel by 17 cents and petrol by 13 cents per litre, but by Monday fuel only fell 13 cents and 10 cents respectively.
An official source at the national fuel company stated to online news source ECO that it had fully reflected and passed on the difference between the average listed price of diesel and petrol last week compared to the week before, as it does every week, both in periods when listed prices go up and when they go down”.
In order to calculate the price of fuel at service stations in Portugal, Galp looks at the weekly averages based on the Platts price listings in euros at the close of business on Friday (S&P Global Platts is the leading independent provider of information, benchmark prices and analytics for the energy and commodities markets). It then adds a mandatory surcharge for biodiesel.
Despite the fall in prices being less than expected by the government, Galp says it is not making more money at the fuel pumps and that its profit margin did not increase when fuel prices were updated this week.
There has been widespread criticism of oil and gas companies accused of raking in huge amounts because of the spiralling demand and cost of petroleum on the international markets.