“Drive Less”

OMV CEO warns: We could run out of fuel

OMV CEO Alfred Stern was a guest on Ö1’s “Journal” on Saturday.(Bild: Reinhard Holl)

The war in Iran is also causing fuel prices to skyrocket in Austria: Gasoline and diesel are more expensive than they have been in a long time. OMV CEO Alfred Stern countered accusations on the “Ö1” Mittagsjournal that the company was profiting from the crisis. He also presented a pragmatic proposal on how to deal with a fuel shortage.

Since the start of the Iran conflict, fuel prices in this country have skyrocketed. Diesel already costs over 1.90 euros per liter at some gas stations. The government is currently still working on a sustainable solution to keep oil prices at an affordable level. 

“The state benefits, not OMV”
In past crises, oil companies increased their profit margins. In an interview on “Ö1”’s “Journal zu Gast,” OMV CEO Alfred Stern rejected the accusation that the company was profiting from the crisis. When asked whether OMV was making a “side hustle,” he countered: “Prices aren’t set in a refinery.” At a price of 1.70 euros per liter of premium gasoline, 90 cents would go toward taxes and duties alone. Of the remaining 80 cents, 55 cents would have to cover the pure cost of the oil. That leaves OMV with just 25 cents.

Massive revenue for the state
Rather, the government benefits from high oil prices. Lower prices at the pumps are currently achievable only through a tax cut. Stern rejected government intervention in the market. Such measures could jeopardize domestic supply security, Stern said.

OMV CEO Alfred Stern was a guest on the Ö1 Journal on Saturday.(Bild: Reinhard Holl)

“If you don’t want to pay, you’ll have to walk”
Stern attributed the spiraling costs to an international shortage resulting from the war in Iran. He noted that the global market is currently short about 20 percent of its oil and 10 percent of its fuels. To bring the necessary quantities to Austria, OMV must pay competitive prices on the Rotterdam exchange. “Anyone in this world who isn’t willing to pay the high prices we pay in Europe and Austria will have to walk,” said the OMV CEO.

Stern warns of fuel shortages
When asked whether the fuel supply for the year was secure, the OMV CEO said that could not be said with certainty—in a worst-case scenario, Austria could run out of fuel. Nevertheless, OMV’s top priority is to ensure supply security for customers, as Stern repeatedly emphasized.

“We have to drive less”
In the event of a fuel shortage, it is quite clear how consumers should behave: “If there is a shortage, then we have to conserve fuel. Drive less, drive slower—there’s no way around it,” said Stern.

Blockade of the Strait of Hormuz has serious consequences
The attack by Israel and the U.S. on Iran on February 28 also affected Austria’s energy supply. The conflict paralyzed oil and gas facilities in the Middle East. In addition, Iran is blocking the Strait of Hormuz, one of the most important passages for global oil trade.