Austria says OMV is now complying with rules on lowering petrol prices

Austria Confirms OMV’s Full Compliance with New Petrol Price Rules

OMV Aligns with Austrian Government’s Petrol Price Regulations

VIENNA, April 23 (Reuters) - Austrian oil company OMV has brought itself into compliance with new rules to lower petrol prices after initially failing to implement them fully, national energy regulator E-Control said on Thursday.

Background: Review Triggered by Economy Ministry

The economy ministry, which oversees energy policy, asked E-Control to conduct a review after partially state-owned OMV said last week it was complying with the rules, despite cutting wholesale diesel prices by less than the required 5 euro cents (6 U.S. cents) per litre.

Government Response to Oil Price Surge

The rules are part of the coalition government's response to an oil price surge driven by the Iran war. They require any rise in value-added tax revenue from higher fuel prices to be returned to consumers through lower fuel tax, and cap retailers' margins, including those of OMV. 

Official Statements from E-Control and Economy Minister

"It is now clear: the full 5 cents from the margin reduction must be passed on - E-Control has made that absolutely clear," Economy Minister Wolfgang Hattmannsdorfer was quoted as saying in a statement issued by the regulator.

"After intensive discussions with OMV, those 5 cents have been passed on continuously and in full in recent days. I am pleased with this clarification and our joint approach," he added.

OMV’s Response and Future Compliance

OMV said it had reached a "common understanding" with E-Control on implementation of the rules and that it was now complying with them.

"This newly established clarity makes a consistent implementation of the applicable requirements possible for all market participants," OMV said.

Additional Information

($1 = 0.8553 euros)

(Reporting by Francois Murphy. Editing by Mark Potter)