WRITTEN QUESTION E-4079/98

by Manuel Escolá Hernando (ARE) to the Commission

(14 January 1999)

Subject: Petrol supplies in Spain

In Spain, the CLH company supplies the main oil companies with the fuel which the latter then sell to petrol stations and other public selling points.

Despite the fact that the CLH sells its product to the oil companies at a standard temperature of 15°, i.e. with a specific density and volume, the oil companies do not make the conversion to this temperature when supplying their clients, which increases the price paid by the latter for a product which "does not exist", since the volume increases with increased temperature, thus also increasing the number of litres which have to be paid for.

In view of this whole situation, and of the fact that Spanish oil companies pay their taxes on the basis of the 15°, can the Commission confirm that these are indeed the facts of the matter?

If so, are such practices in accordance with Community directives? And if not, what measures does the Commission intend to take?

Answer given by Mr Bangemann on behalf of the Commission

(19 April 1999)

Petrol for motor vehicles is a liquid which, like all liquids, increases in volume with increasing temperature for the same mass of liquid. If a liquid is traded by volume and the increase in volume is substantial, significant profits can be made by selling the product at a higher temperature than the temperature at which it was purchased.

Ideally, liquids that are prone to significant change in volume due to temperature changes should be sold by mass. Traditionally, however, for practical reasons determining the quantity of liquid is done by metering the liquid, or measuring the volume by other means, due to the non-solid form in which the product presents itself. Liquids are therefore usually sold by volume. To compensate for the temperature dependence of the volume, the measured volume is often converted to a value at base conditions. However, it is not impossible that in the future, technical progress in measurement technology might make the mass measurement of liquids economically feasible by automatic conversion to mass, or even direct mass metering.

The taxation of mineral oils is governed by Council Directive 92/81/EEC of 19 October 1992 on the harmonization of the structures of excise duties on mineral oils(1). Article 3(1) requires that Member States subject mineral oils to taxation on the basis of volume at 15°C. It is therefore in line with the requirements of this Directive that the payment of duty by the enterprise releasing the mineral oil for consumption is made on the basis of the volume at 15°C.

The Commission is not aware whether or not in Spain systematic abuse is made of the temperature dependence of the volume of petrol downstream of the point of the taxation. The Commission considers that fighting unfair trading practices is primarily a responsibility of the Member States. Nevertheless, there are two possible situations that could lead to action being taken at Community level. One situation would arise should the national legislation hinder trade in industrial goods in the internal market, such as the measuring instruments used to determine the amount of petrol. The second possibility is to take account of intra-Community trade where it has been established that the measures taken by the Member States are insufficient to achieve such an objective.

Since it has not been established that either of the above situations exist, the Commission does not intend for the present to take any action in respect of the trading practices in Spain highlighted by the Honourable Member.

(1) OJ L 316, 31.10.1992.