In the first quarter of 2026, Slovenia’s Petrol Group experienced a dramatic decline in profitability, attributing the downturn primarily to the country’s regulated fuel pricing system. Despite achieving stable revenues and an increase in fuel sales volumes, the company’s financial results were adversely affected by these regulatory constraints.
During the period from January to March, Petrol Group reported revenues of approximately 1.5 billion euros, which remained largely unchanged compared to the same timeframe in 2025. However, net profit plummeted by 73%, with EBITDA falling by 39% to 41 million euros. Operating profit also saw a significant reduction, decreasing by 65% to 14.8 million euros.
The month of March proved particularly challenging for Petrol, with regulatory measures leading to reported losses of 27.5 million euros. This occurred despite a notable increase in sales volumes during that month. The company has expressed concerns that the existing pricing framework fails to account for actual operating costs, rendering it unsustainable for fuel retailers.
Additionally, uncertainty surrounding potential adjustments to fuel prices indicated by government signals further complicated market conditions for Petrol. Nevertheless, the company managed to maintain a consistent supply of fuel and energy throughout the quarter.
In terms of operational performance, Petrol sold around one million tons of fuels and petroleum products, marking a year-on-year increase of 10%. Revenue from merchandise and services also rose by 8% to 152.9 million euros, although gross profit saw a slight decline of 4%, totaling 151.9 million euros.
CEO Sašo Berger highlighted that the current regulatory environment is detrimental to sustainable long-term operations within the fuel retail sector. He pointed out that regulated pricing directly contributes to operational losses and heightens supply risks. The company plans to pursue legal actions related to the pricing model while advocating for the removal of fuel price controls.
Vesna Južna, Chairwoman of the Supervisory Board, noted that regulated retail margins have remained stagnant for over a decade despite significant inflationary pressures and rising operational costs. She cited that inflation has reached approximately 20% over the past four years, while operating expenses have surged by more than 35%, severely impacting profitability.
In light of these challenges, management has been directed by the Supervisory Board to develop protocols for scenarios where regulated fuel sales may no longer be viable for profitable operations. As of the end of March, Petrol employed 5,759 people, reflecting a decrease of about 2% from the previous year. The company also invested 26.8 million euros during this quarter while maintaining a stable financial position and favorable credit outlook.
