Galp has publicly rejected the idea of imposing exceptional maximum margins on fuel sales, arguing that such measures do not make sense in the current market environment.
The Portuguese energy group stated that it remains available to provide all necessary information to the Energy Services Regulatory Authority (ERSE) but maintains that artificial caps on refining margins are not a viable solution to high consumer prices.
Galp’s refining margin jumped 175% in the second quarter, a surge driven by sustained geopolitical tensions affecting global energy supply chains.
The company’s stance comes as it benefits from significantly widened refining spreads.
Galp’s refining margin jumped 175% in the second quarter, a surge driven by sustained geopolitical tensions affecting global energy supply chains.
This improvement in processing spreads highlights how supply disruptions have disproportionately benefited integrated refiners with operational flexibility, allowing them to capture higher value from crude processing.
This position contrasts with the broader market narrative where Brent crude has retreated to pre-war lows as shipping routes through the Strait of Hormuz have normalized. Despite the easing of immediate shipping risks, Galp argues that the structural tightness in the market justifies current margin levels.