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The derogation for Russian oil, which was won by Bulgaria during the government of Kiril Petkov, continues to be the bone of contention in political circles. What to expect… Georgi Panicharski, who is a member of the Board of Directors of the Association of Bulgarian Traders, Producers, Importers and Transporters of Fuels, spoke to FAKTI.
– Mr. Panicharski, the topic “Lukoil” and the future of the refinery is definitely the most interesting in recent days. What do you expect to happen? Derogation, prices…
– Derogation is a good thing if it benefits Bulgaria and the people. Is there any benefit… Here the question is already in the work of the state for the people. This thing doesn’t happen. Is there an effect of a difference between the price of Russian oil and other types of oil, then the processing and so on to the product for the final consumer. Does it benefit the state and the people, or is this derogation in the interest of one part of a company?
– At how much lower price does Russian oil enter Bulgaria, because information appeared that it should enter at 60, but it enters at 90 dollars per barrel – the same as the other grades?
– I can’t be very precise about this. There are specialists who can speak much better than I can about the trading of oil products. Otherwise, this can easily be seen as prices in the oil markets. It is not a bad thing to have this derogation, the point is that the country and the people receive dividends from this thing.
– What market share does Lukoil hold in the supply of fuels in Bulgaria?
– Lukoil’s share is close to 80%, and the remaining 20% is imported. If it comes to stopping the operation of the refinery – for me, in no case should this be allowed, it will cause a big cataclysm in the fuel market. On the other hand, imports in such volumes at the moment cannot happen so quickly to secure the market. A vacuum will result, and everyone will suffer.
– When we talk about the remaining 20%, from where are the most fuels imported into Bulgaria?
– From Romania and Greece. But it is absurd to say that imports can cover such a great need. Of course, this can happen in time to make some kind of compensation, but this requires a lot of logistics, means of transport, waiting at customs, if hundreds of tankers have to cross the borders every day. It’s almost unthinkable. It’s the worst option for the state if it turns out to stop the refinery from operating. I still think that politicians are sober-minded people and will not allow it.
– With the big players in the fuel trade, things may be a little more optimistic, but what awaits the small fuel trader if a cataclysm happens with the refinery…
– When we have a fuel crisis, everyone suffers. It’s not about whether you’re small or big, whether you’re a merchant or a consumer. If we have a fuel crisis, there will be a supply problem. We are talking about an outflow of customers, which is not that much anyway when we talk about the small gas stations.
– If “Lukoil” pays its taxes, fuels should be reduced by 73 cents. Do you have any vision, do you have any information on exactly how this can happen?
– This is very funny to me when I heard that fuel can be reduced by 73 cents. And the reason is that this is absolutely political talk by people who are not aware of the matter of the fuel business. They throw some talk like campaign promises and talk about pennies… It’s not bad if it actually happens, but the thing is –
why do you say something and promise it, but 20 years before you did nothing in this direction.
The fact is that 20 years have passed since the privatization of this refinery. Of these, only 1 or 2 years the company turns a profit. And now for the people who previously ruled for 12 years to tell me that they will give out 73 cents… It’s somehow not good. They say that now they will collect the profit of Lukoil. That’s not a bad idea. But before that you did nothing for 12 years, and now you remembered when the derogation ends in one year. In words, everything is very good, but I do not see how this will happen. I say again that this is absolutely political talk and making campaign promises. I personally very much doubt that this will happen. Otherwise, I hope they fulfill it, but I don’t believe they will keep their word. As Mr. Borisov likes to say – we had the knife and the cheese. So what… Okay, let them make this company pay their taxes and do something for the people, but I doubt it.
– How much is earned from the sale of fuel at a small gas station?
– The profit in our country is not big at all, if we compare it with European countries. We say that purely in percentage terms, our profit is smaller than other countries in the EU. Average between 2 and 5% is the profit on the fuel value per column. You can calculate what percentage this is from BGN 2.80. The margins are not big, but you have to take into account that the investment you have to make to put it in gas stations is quite big. I would say that the margins are quite normal for a fast-moving commodity like fuels.
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Rating 3.9 out of 14 votes.
2023-10-25 10:10:00
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