On August 1, 2023, the obligation for i petrol stations located on roads and highways to display a billboard containing the average prices of the various types of fuel available at the point of sale, together with the prices actually charged.
These prices are requested to be updated daily. This rule was established by the implementing decree envisaged by the law converting the Fuel Decree. Let’s see what the effects of this provision are on both service station managers and motorists:
Gasoline, diesel and fuel prices: what’s changing Fines and sanctions for those who don’t respect the rules But is it really necessary to display prices? The truth is quite different.
Gasoline, diesel and fuel prices: what changes
The Ministry of Business and Made in Italy receives communications on fuel prices from distributors and is responsible for processing the data. Calculate the arithmetic mean of prices communicated by operators of service stations located outside the motorway network, divided by regions and autonomous provinces, as well as the arithmetic mean of the prices. It then publishes the data in an open format on its institutional website.
The method of communicating pricesto be carried out in the event of changes, both upwards and downwards, and on a weekly basis, even in the absence of changes, as well as the characteristics and display methods of billboards containing information on average prices, are defined by an implementing decree of the Ministry of Enterprise and Made in Italy.
Service station operators, including those located along the motorway network, must clearly display billboards containing average reference prices. In order to ensure adequate dissemination of the data communicated and the average prices published, MIMIT develops and makes available a free application for mobile devices, which allows users to consult the average prices and the actual prices charged by individual merchants.
In summary, in the service stations located outside the motorway network, next to the sale price charged, the regional average price provided by MIMIT must be displayed, calculated on the basis of the prices communicated by the operators of the stations themselves. Motorists can thus check if the distributor is applying a price in line with the regional average or if it is higher or lower, and act accordingly. At motorway service stations, the average price is calculated nationwide.
Fines and penalties for those who do not respect the rules
In case of failure to communicate fuel prices, a administrative fine ranging from 200 to 2,000 euros, also taking into account the merchant’s turnover, calculated for the day on which the violation occurred. In the event that the failure to communicate the prices is repeated at least 4 times, even if not consecutive, within a period of 60 days, the suspension of the activity may be ordered for a period between 1 and 30 days.
This sanction is applied, with the same amounts and methods, even in the event of a breach of the obligation to display the average price. The verification of violations is the responsibility of the financial police, while the imposition of sanctions is the responsibility of the prefect.
But is this new law really needed? The truth according to the Antitrust
Unfortunately, the rejection came directly from the Antitrust in an official session in the Chamber in reference to this new government law. The president of the Competition and Market Authority (Agcm), Roberto Rustichelli, explained during the hearing that he and his own body “believe that there is no need to introduce a mechanism for calculating and disseminating average reference values, given that the benefits for consumers appear uncertain, instead of a possible risk of reduction of competitive stimuli”.
According to Rustichelli, “the arithmetic mean of the regional price is very little representative of the effective competitive context in which a fuel distribution plant operates”, since “a fuel distribution plant is actually in competition only with the plants located a few kilometers of distance”. “The expected double billboards – added Rustichelli – could even lead some consumers into confusion”.
And the truth (but also the actual consequent problem and not its presumed resolution): “Dissemination among merchants of a regional average price risks reducing price variability, as it could be used by companies to automatically converge on a focal'”. And so there would be no increase in competition and the possibility of a drop in the price of fuel, on the contrary….