A large number of petrol stations may be forced to close due to growing problems in the sector, the head of the Federation of Petrol Station Owners (OBE), Michalis Kiousis, said last week.

500 gas stations have shut up shop since the start of the year, while another 1,000 continue to operate but have scaled down their operations while searching for a buyer, according to Mr Kiousis.

The financial crisis, the drop in consumer incomes and the recent tax hikes on fuel have led to a 30 per cent drop in petrol consumption, Mr Kiousis said.

Petrol prices have soared since the start of the year and now rank among the most expensive in Europe. This began after the government hiked levies on fuel products and value-added tax in a bid to boost government revenues as part of measures to get through the fiscal crisis.

Consumers who continue to use their cars are turning to other energy solutions, such as using liquefied natural gas, because of the high petrol costs, Kiousis added.
Others who reside close to the country’s border cross into the Former Yugoslav Republic of Macedonia (FYROM) or Bulgaria to fill up their tanks for a price that is 0.40-0.50 euros cheaper per litre than in Greece, he added.

The head of the petrol station representative body called on the government to reduce the levies that have been imposed on petrol. The representative argued that several tax hikes on fuel have failed to boost government revenues due to the corresponding sharp drop in consumption.