No C 50/2 Official  Journal  of the European  Communities 4. 3. 76 
II 
(Preparatory  Acts) 
ECONOMIC  AND  SOCIAL  COMMITTEE 
Opinion  on the  draft  Council  Regulation  regarding  a Community  procedure  for 
information  and  consultation  on the  prices  of crude  oil and  petroleum  products  in 
the Community 
The text  referred  to the  Committee  has  been  published  in Official  Journal  of the 
European  Communities  No  C 231  of 10 October  1975,  page  5. 
A. LEGAL  BASIS  FOR  THE  OPINION 
On 11 August  1975  the Council  referred  the abovementioned  proposal  to the Economic 
and Social  Committee  in accordance  with  Article  198  of the  Treaty  establishing  the 
European  Economic  Community. 
B. OPINION  OF THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
The Economic  and  Social  Committee  prepared  its opinion  on the above  matter  at its 
136th  plenary  session,  held  in Brussels  on 28 and  29 January  1976. 
The full  text  of the opinion  is as follows: 
THE  ECONOMIC  AND  SOCIAL  COMMITTEE, 
Having  regard  to the request  for an opinion  made  by 
the Council  of the  European  Communities  on 11 
August  1975, 
Having  regard  to  the  Treaty  establishing  the 
European  Economic  Community,  and  in particular 
Article  198  thereof, 
Having  regard  to the decision  taken  by its Bureau  on 
23 September  1975,  instructing  the Section  for Energy 
and Nuclear  Questions  to draw  up an opinion  and 
report  on the matter, 
Having  regard  to the opinion  issued  by that  section 
on 9 January  1976, Having  regard  to the  oral  report  made  by  the 
rapporteur,  Mr Hoffmann, 
Having  regard  to the  discussions  held  at its 136th 
plenary  session  held  on 28 and  29 January  1976 
(meeting  of 28 January  1976), 
Whereas  knowledge  of supply  conditions  and  of the 
market  constitutes  one  of the basic  preconditions  for 
a Community  energy  policy; 
Whereas  transparency  of costs  and  prices  in the 
petroleum  products  sector  is an important  factor  in 
the sound  functioning  of the market, 
4. 3. 76 Official  Journal  of the European  Communities No C 50/3 
HAS  UNANIMOUSLY  ADOPTED  THE  FOLLOWING 
OPINION: 
1. General  comments 
1.1. For  energy  policy  reasons  and  in the interests 
of consumer  information,  the  Committee  approves 
the Commission's  aim  of ensuring  a greater  degree  of 
cost and  price  transparency  in the markets  for crude 
oil and  petroleum  products.  Such  transparency  would 
enable  consumers  to make  valid  comparisons. 
1.2. Having  examined  the  explanatory  statement 
and the text  of the draft  Regulation,  the Committee 
has some  doubts  about  the  Commission's  ultimate 
intentions.  There  are  in  fact  considerable 
discrepancies  between  the explanatory  statement  and 
the text  of the draft  Regulation.  This  gives  grounds 
for wondering  whether  the  Commission's  intentions 
are more  ambitious  than  its draft  indicates.  If the 
Commission's  ultimate  objectives  go beyond  overall 
market  transparency,  the  Committee  considers  that 
this must  be spelt  out unequivocally  in the proposal. 
The Committee  believes  that  it is not practicable  to 
go further  at present. 1.5. It  is important  to specify  those  companies 
from  whom  information  is required.  Steps  must  be 
taken  to ensure  that  these  are  a representative 
cross-section,  particularly  since  the conditions  under 
which  the small  operators  work  can  be very  different 
from  those  of their  larger  counterparts  who  have  a 
major  share  of the market. 
1.6. When  the information  has been  supplied,  only 
comparable  data  should  be  used.  There  will 
inevitably  be certain  gaps  in the information  supplied 
to a Member  State  by  the  operators.  In these 
circumstances,  the  Committee  feels  that  the 
Governments  of the Member  States,  who  are likely  to 
be better  acquainted  with  the  peculiarities  of their 
domestic  market,  should  compile  the information. 
1.7. The  Committee  believes  that  aggregated 
information  for each  Member  State  — as proposed  in 
the draft  Regulation  — is sufficient  to meet  the 
objective  of  market  transparency.  A synopsis, 
provided  that  the  Member  States  can  back  up this 
information,  if need  be, with  detailed  data  on each 
company  and  provided  that  the  Commission  has 
access  to this  information,  would  not  only  facilitate 
the Commission's  task  but  would  also  satisfy  the 
operators  on the need  for confidentiality. 
1.3. The  Committee  is well  aware  that  comparison 
of costs  and  prices  in the  crude  oil and  petroleum 
products  sector  in the  Community  is an extremely 
complex  task.  Costs  and  prices  are influenced  by a 
wide  variety  of factors,  such  as crude  oil supply 
conditions,  oil company  structure,  refining  capacity, 
distribution  network,  climatic  conditions,  demo-
graphic  structure,  consumption  patterns,  availability 
of alternative  energy  forms,  economic  conditions  and 
fiscal  policy.  The  Commission  acknowledges  these 
difficulties  in the last  paragraph  of the  explanatory 
statement.  It is therefore  desirable  that  initial  efforts 
to tackle  this  problem  should  be  sufficiently 
comprehensive  and  accurate  to allow  comparisons  to 
be made,  while  at the same  time  seeking  to minimize 
the administrative  burden  involved  in compiling  the 
data.  But  it is doubtful  whether  the proposal  in its 
present  form  would  meet  either  condition. 
1.4. The  Committee  would,  in particular,  point 
out the  significant  role  which  fiscal  policy  plays  in 
determining  oil prices.  Thus,  in addition  to seeking 
information  from  the Governments  of Member  States 
on the total  amount  of duties  and  taxes  paid  on each 
product,  the  Commission  should  also  consider  the 
case for requesting  post-tax  price  information  from 
the operators. 2. Specific  comments 
2.1. Article  1 
2.1.1.  For  the  purpose  of this  Regulation,  the 
Committee  considers  that  it is sufficient,  and  at the 
same  time  more  practical,  for  the  Commission  to 
have  aggregated  information  in respect  of each 
Member  State.  Accordingly,  the seven  indents  which 
itemize  the required  data  should  all be placed  under 
the heading  'for each  Member  State'. 
2.1.2.  In  addition,  the  sixth  indent  should  be 
amended  to read: 
'— the  average  current  actual  pre-tax  consumer 
price  applicable  on the first  day of the current 
quarter.. 
No C 50/4 Official  Journal  of the  European  Communities 4. 3. 76 
2.2. Article  2 
The Committee  supports  the  principle  that  price 
information  should  &e  sought  directly  from  the 
operators.  It suggests  that  the Commission  should,  in 
addition,  look  at the  possibility  of setting  up  a 
'consumer  panel'.  The  sample  survey  information  on 
consumer  prices  thus  obtained  would  serve  as a 
useful  cross-check  on the  data  provided  under  Ar-
ticle 1. Since  both  methods  have  different  statistical 
shortcomings,  such  a  cross-check  would  be 
particularly  useful. 
2.3. Article  3 
In view  of the comments  contained  in item  2.1.1,  the 
reference  in Article  3 to subparagraph  (b) should  be 
deleted.  The  sentence  would  then  read  'to fulfil  the 
obligation  defined  in Article  1'. 
2.4. Article  5 
This  Article  should  embody  the  intention,  expressed 
by the  Commission  in its explanatory  statement,  to 
set up a technical  committee  to ensure  homogeneous 
presentation  of the data  to be compared.  In addition, 
it should  be spelt  out  clearly  that  the  Commission, 
after  consulting  the Energy  Committee,  should  be the 
body  to make  proposals  for any  action  which  would 
appear  to be necessary.  Accordingly,  the Commission 
suggests  that  the Article  should  read  as follows: 
'1. A  Technical  Committee  composed  of 
representatives  of the  Member  States  and  of the 
Commission  and  experts  shall  be established. 
2. The  Energy  Committee  shall  discuss  the 
data  supplied  or to be supplied  in accordance 
with  Article  4. 
3. In  the light  of such  discussions  it shall  be the 
Commission's  task  to propose  any  steps  which 
would  appear  to be necessary.' 2.5. Article  6 
If the Committee's  suggestions  on aggregation  are 
adopted,  this  Article  will  be superfluous. 
2.6. Article  8 
Similarly,  it will  be  possible  to  omit  'the 
confidential  nature'. 
2.7. Article  9 
For the  same  reason,  the  reference  to Article  3 
would  be superfluous. 
2.8. Article  10 
It should  be specified  that  the  Annexes  are  an 
integral  part  of the Regulation. 
2.9. Annex  1 
2.9.1.  All  references  to  subparagraphs  of 
Article  1, e.g.  'Article  1(a)',  'Article  1 (b)'  should 
be replaced  by references  to 'Article  1'. 
2.9.2.  Under  the  heading  'Current  actual 
prices',  the term  'delivered  prices'  should  be much 
more  precisely  defined. 
2.10.  Annex  II 
Heading  C should  be clarified  to read: 
'For the  average  net  pre-tax  prices  ruling  for 
certain  categories  of consumer.' 
Done  at Brussels,  28 January  1976. 
The Chairman 
of the Economic  and  Social  Committee 
Henri  CANONGE