Press and Information Division

PRESS RELEASE No 54/01

25 October 2001

Judgment in Case C-398/98

Commission of the European Communities v Hellenic Republic

GREEK LEGISLATION ON EMERGENCY STOCKS OF PETROLEUM PRODUCTS IS INCOMPATIBLE WITH COMMUNITY LAW

The Court of Justice holds that the compulsory maintenance of stocks of petroleum products, linked to advantages in obtaining supplies from refineries established in Greece, is not compatible with the principle of the free movement of goods.


The Greek market in petroleum products is structured on three levels: refineries, marketing companies and service stations. Marketing companies may buy petroleum products from Greek refineries or import them, and then supply the service stations. Service stations are prohibited from buying directly from refineries and importing petroleum products. They must therefore use the marketing companies.

Community legislation requires Member States to maintain emergency stocks of petroleum products. The level of those stocks must be at least equivalent to 90 days' average daily internal consumption in the preceding year. The emergency stocks must be held on national territory and put together by the marketing companies.

Since 1996, the marketing companies have themselves had the right to transfer their storage obligation to refineries established in Greece, in proportion to the quantity of petroleum products bought from the latter during the previous year.

The Commission has not criticised storage at refineries, but taken the view that that system gives an advantage to Greek refineries because the marketing companies are encouraged to obtain supplies from national refineries which offer them storage facilities. The Commission regards this as an infringement of the free movement of goods and brought the question before the Court of Justice.


The Greek Government has argued that, even if that system does constitute an obstacle to the free movement of goods, that obstacle is justified by an objective in the public interest, namely the certainty of supply of petroleum products.

The Court has held that the facility offered to marketing companies to transfer their obligation to store petroleum products to refineries situated in Greece clearly involves advantages which lead them to obtain a large part of their supplies from refineries situated in Greece. Making the transfer of the storage obligation conditional upon the purchase of petroleum products from refineries established in Greece constitutes discrimination against petroleum products from refineries situated in other Member States, in that it makes their marketing more difficult.

Finally, the Court considers that the security objectives cited by Greece could be achieved by less restrictive measures.



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