Το φαινόμενο της ασυμμετρίας στο πετρέλαιο κίνησης στην Ελλάδα
Phenomenon of asymmetric price transmission of diesel in Greece
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Keywords
Πετρέλαιο κίνησης ; Ασυμμετρία ; Τιμές πετρελαίου ; ΕλλάδαAbstract
The link between the price of crude oil worldwide and the price of diesel that the Greek consumer is called to pay is a matter that concerns the common opinion in many countries, including Greece. There is a strong belief that oil companies try to raise diesel price in Greece whenever there is an increase in crude oil but on the other hand the same does not hold for the opposite situation. That is a way for oil companies to accomplish profits at Greek consumer’s expense. This asymmetric price transmission is something that has concerned many economists worldwide. In the last twenty years many surveys have been published for this phenomenon examining data of different countries in different time periods. The very same phenomenon has been examined by the European Commission for fifteen countries in European Union.
Outcomes are different for each examined country and for the same country depending of the data and the econometric models have been used. Many surveys have discovered strong indications of asymmetric price transmission and other does not. Purpose of this assignment is to examine the very same phenomenon with data of Greece following the methodology that has widely been used around the world. By doing this we have the chance to answer in three main issues. First of all, if an increase in the global price of crude oil is passed with the same sum in the domestic market, then we have an 100% speed of adjustment. Secondly, how much time is required for the domestic price to be fit in the global changes of crude oil price. Lastly, is the speed of adjustment the same for the both an increase and a decrease in the global price of oil? Or oil companies try to delay the adjustment after a decrease in order to accomplish further profits? In Greece prices are adjusted a bit slower after a decrease in the global price of crude oil and faster after an increase but this difference is not statistically significant. The same holds for some of the other countries in the European Union.
Findings of this assignment are pretty much the same with other surveys. Asymmetric price transmission in Greece can only be accepted partially. A more extended analysis with exact prices that oil companies pay can lead to different results. What we can conclude is that profits of oil companies that use these methods are small and do not linger for long. But on the other hand that matters is if the margin of profits of the companies coincide with a proper return on capital. If there is a deviation of these levels can be interpreted in further profits rather than a surcharge in periods of fluctuations in the global price of crude oil.