A leveling of Greece’s special consumption tax on diesel with that of heating oil hasn’t stopped illegal fuel trading and government officials are now concerned that’s moving to the shipping industry as well and are planning steps to stop it.
Finance Minister Yannis Stournaras met with Development and Energy Minister Costis Hatzidakis, Merchant Marine Minister Constantinos Mousouroulis and two deputy ministers, after it was found that the illegal fuel trade has been cut 50 percent, but still accounts for 300 million euros ($403 million) in lost revenues, the newspaper Kathimerini said.
Shipping fuel is seen as the biggest problem area. A study by the Merchant Marine Ministry, presented during the meeting, confirmed market estimates regarding a shift in the illegal fuel trade from heating oil to oil for ships. The volume of shipping fuel appears to be unjustifiably high, which confirms the growth of smuggling in this type of fuel, which enjoys a privileged tax rate.
Officials settled on closer cooperation between the ministries of Finance and Merchant Marine to contain the problem, including installing GPS systems on all fuel tank vessels and to establish specific mooring spots in ports for them to be better monitored.
The installation of inflow-outflow systems at fuel stations was also discussed, an obligation to which Greece has agreed with the country’s international creditors. A ministerial decision has been issued forcing all fuel stations in Attica and Thessaloniki to install the systems by March 27, those in Larissa, Achaia (Patra), Iraklio, Magnesia (Volos) and Ioannina by September 27, and gasoline stations in the rest of the country by March 27, 2014. The country’s international lenders have demanded that any stations that do not comply will have to close.
The ministers agreed that no extensions would be made to the deadlines, although most fuel stations in Attica and Thessaloniki are yet to install the system. Realizing the funding issue there, Hatzidakis said plans to negotiate the allocation of European Union funds to this end with Greece’s creditors.
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