Padlock epidemic in Greek quarries – The reasons

of Eleni Botas

Padlocks have entered the quarries due to the increase in energy costs which makes their operation unprofitable.

According to the data of the Association of Mining Companies (SME), diesel is used by 95 to 100% as fuel in the engines of the working machines in the Aggregates quarries.

On average, the production of one ton of aggregate requires 0.8 to 1.15 liters of oil, with the direct result that diesel is at least 20% of the cost of production of a quarry.

In addition, the low selling price of Aggregates, inevitably imposes informal proximity between the quarries and the consumption centers, where another factor of financial burden, road transport, is inserted between them.

According to transporters, the cost of diesel is about 40% of the operating cost of transporting Aggregates from Quarries to consumption centers.

According to the report of SME, Fotis Stefanis A ‘Vice President of the Association “among others, the average consumption of electricity, which significantly burdens the operating costs of an Aggregate Quarry, is currently estimated at 2 Kwh per ton.

In previous years and certainly until 2020 and around the middle of 2021 the average price of electricity supply in our country was 65 euros / MWh, while in the last quarter of 2021 it reached the level of 250 euros / MWh.

After the subsidy given by the government for the months of January and February 2022 (subsidy of 65 euros / MWh), the average supply price for this period was around 180 to 185 euros / MWh.

In March 2022, the average price of electricity is expected to exceed 280 euros / MWh, while after the expected higher (estimated at 130 euros / MWh) will rise to levels just below the previous two months of 2022.

So, although the State subsidizes medium voltage bills, the reality is that an average Aggregate quarry pays today, on a monthly basis, the amount of 15,000.00 euros for its electricity instead of 5,000.00 euros that it paid before the energy crisis of recent months.

At the same time, the Greek state with the doctrine that the excise tax (VAT) and VAT. in fuels ensure tax revenues over 6 billion euros every year in the state budget does not seem willing to reduce even the E.F.K. nor the VAT in fuel.

On the contrary, already 8 countries of the European Union have significantly reduced the E.F.K. in fuel, a measure which will benefit all users without exception directly when purchasing fuel “.

As the General Manager of SME Christos Kavalopoulos points out in Capital.gr “There is a demand for aggregates, but the jump in the price of oil and electricity has made their operation unprofitable, with the result that they are rolling down the aisles.”

According to Mr. Stefanis, “the current variable production cost of Aggregates quarries has increased by at least 60%.

Obviously, this increase is not only due to the increase in the price of diesel and electricity, but there are other factors that aggravate the situation, such as mineral oils, spare parts, explosives, iron and many other materials. whose purchase price has also risen excessively.

The question therefore arises effortlessly whether one can assure that these increases will not continue. In my opinion, even if inflation eases in a year, prices on many goods will not fall.

The price of oil in the 1970s, even when inflation eventually fell, remained high where it was driven. The same thing is likely to happen now. ”