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Saturday, March 25, 2023

Thanks to the new Jansa government, a large reduction of electricity, gasoline and diesel prices

The government, led by Janez Jansa, has passed a decree that will lower electricity bills for the average household by around 20 percent. At the same time, as oil prices fell down on world markets, they did not raise excise duties on motor fuels, thus filling the national budget, so fuel prices are drastically lower since Tuesday, March 24. Fuel prices went down from 13 to 15 percent. These means significant savings, for both, households and businesses.

Lower electricity bills apply to household and small business customers (sole proprietorships, micro and small businesses). Large companies negotiate with suppliers on a yearly price for electricity. The government has reduced energy prices as part of measures to mitigate the social and economic consequences of the spread of the new coronavirus (covid-19). According to this decree, before mentioned, do not pay a contribution, to provide support for the production of electricity in high-efficiency cogeneration and from renewable sources. The measure is valid from 1 March to 31 May 2020.

At the same time, oil products prices dropped sharply at midnight on Tuesday. Gasoline prices have been the lowest in the last eleven years. The reason for the great drop of petrol and diesel prices is that the government did not interfere with the excise tax, when the reduction of crude oil prices happened on world markets. Per litre of 95-octane gasoline € 1,029 (previously € 1,205) has to be payed on petrol service stations outside the motorway and expressway network. That’s 17,6 cents, or about 15 percent less than before. For a 50 litre tank, that is € 8,80 less.

A litre of diesel fuel fell by 12,9 cents to € 1,017 (from € 1,146), or for about 13 percent. At 50 litre of fuel tank, that is € 6,45 less. The litre of 95-octane gasoline tank was last time so cheap in Slovenia in May 2009, when the world was facing a financial and economic crisis and diesel fuel prices in March 2016. Oil prices on world markets have now dropped due to the pandemic of the new coronavirus. Otherwise, the Slovenian government could have raised the excise tax and prices for a litre of fuel would have been higher, but they did not.

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