Refineries fretting over EU levy

Refineries fretting over EU levy

Greece’s two refining companies – Hellenic Petroleum and Motor Oil – are skeptical to say the least of a European Commission proposal for an extraordinary levy on the profits of 2022, which the Greek government reportedly supports and plans to adopt regardless of whether it becomes mandatory for member states.

The pressure on state coffers to continue providing electricity and natural gas subsidies is considerable, and the taxation of high profits of 874 million euros cumulatively (adjusted net) for the two refineries in the first half of 2022 alone would constitute a new source of financing that is essential for supporting households in the face of winter and their increased need for heating.

The European Commission’s plan for dealing with the unprecedented energy crisis also foresees the imposition of an extraordinary levy on the oil, natural gas, coal and refinery industries, amounting to at least 33% of their additional profits. The basis will be pre-tax profits in 2022, which are more than 20% higher than the three-year average, starting in 2019.

The proposal in the case of Greece rests on the refinery companies of Hellenic Petroleum and Motor Oil, whose shares have already come under some pressure with the leak of the draft regulation.

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