Petrol Group profit plunges in Q1 2026 as Slovenia’s regulated fuel pricing squeezes retailers

Slovenian energy group Petrol Group reported a steep decline in profitability in the first quarter of 2026, highlighting how regulated fuel pricing is increasingly failing to cover real operating costs. The development matters for investors because it shows how policy-driven pricing can pressure margins and raise supply-related risks even when demand holds up.

Revenue steadies, but profits fall under regulation

For January to March, Petrol generated around 1.5 billion euros in revenue, broadly unchanged from the same period last year. Despite that stability—and higher fuel sales volumes—the company’s net profit dropped by 73%. EBITDA fell by 39% to 41 million euros, while operating profit decreased by 65% to 14.8 million euros.

March losses linked to the pricing framework

Petrol said the most severe pressure came in March, when regulatory fuel pricing measures reportedly resulted in losses of 27.5 million euros even as sales volumes increased notably during the month. The company argued that the current pricing framework no longer reflects actual operating costs and has become unsustainable for fuel retailers.

Policy uncertainty adds another layer of strain

The group also pointed to additional uncertainty created by government signals about potential fuel price adjustments. Petrol said it maintained uninterrupted fuel and energy supply throughout the quarter, but it warned that the regulatory environment is worsening operational outcomes for retailers.

Sales volumes rise; merchandise revenue grows

Across the first three months of 2026, Petrol sold approximately one million tons of fuels and petroleum products—about a 10% increase year-on-year. Revenue from merchandise and services rose by 8% to 152.9 million euros, while gross profit declined slightly by 4% to 151.9 million euros.

Management calls for removal of price controls

CEO Sašo Berger said the current regulatory environment does not allow sustainable long-term operations in fuel retailing, adding that regulated pricing is generating operational losses and increasing supply risks. He confirmed that Petrol will continue pursuing legal actions and compensation claims tied to the pricing model, while calling for an end to fuel price controls.

Margins unchanged for more than a decade despite higher costs

Supervisory Board Chairwoman Vesna Južna said regulated retail margins have remained largely unchanged for more than a decade despite inflation and significantly higher operating costs. She noted inflation over the past four years reached around 20%, while operating expenses increased by more than 35%, severely weighing on profitability.

Contingency planning as investment continues

In response to the pressure on profitability, the Supervisory Board instructed management to prepare a protocol covering scenarios in which regulated fuel sales may no longer support profitable operations. At the end of March, Petrol employed 5,759 people—about 2% fewer than a year earlier—and invested 26.8 million euros during the quarter while maintaining a stable financial position and a favorable credit outlook.