Topic Of The Week
OF ITS OWN ACCORD
The first meeting in four months of the sectorial group of experts and analysts on the operation of the oil and fuel market and the development of the oil refining industry took place at 30 Khreschatyk Street on November 15, 2011. The meeting fell below the radar of the Ukrainian mass media, and its agenda had only one issue – the current situation with prices on the country’s fuel market and the supply of resources. The participants in the meeting concluded that there are no threats to the current stability of the wholesale and retail segments. The available stocks of oil products (about 180,000 tonnes of petrol and 250,000 tonnes of diesel fuel) will be quite enough to meet current demand both in the short- and long-terms.
Anti-counterfeit Campaign
LEAKY LEGISLATION
This year has seen the trial of a group of entrepreneurs from Kryvy Rih who tried to trade in crude oil illegally tapped from an Ukrtransnafta pipeline. Although security service officers blocked the flow of ill-gotten oil, leaky legislation was unable to allow justice to prevail. An attempt by the government to toughen the punishment for such actions also failed in parliament.
Scandals
THE SCANDAL OF THE WEEK:Ukrnafta’s Filling Stations Stalled By Environmental Issues In Focus
In the middle of October 2011, Kyiv’s District Administrative Court declined to meet a claim filed by PJSC Ukrnafta to rule as unlawful the inactivity of the State Environmental Protection Department in Zaporizhia region. In particular, the oil producing company complained about the illegal actions of environmentalists in Zaporizhia region, who refused to register permits for emissions of air pollutants from «stationary facilities.» The stationary facilities in question are the company’s 62 filling stations – its entire retail chain in Zaporizhia region.
Forecast
A THOUSAND AND ONE NIGHTMARES!
The beautiful Scheherazade of «One Thousand and One Nights» knew how to handle the Sultan and to postpone her execution. Charming him with stories with hints that evolved from one to another, she was not only saving herself, but was also giving him advice on important matters, and that was why he so appreciated her. Now horror stories Steven King would have been proud to have written, are being read instead of stories with tips about how to overcome the crisis. This is why oil prices are under such pressure…
DIESEL BURSTS
Under economic forecasts given by the Psyche Center on the basis of a regressive analytical model, there will be no drastic changes in fuel prices this week. In particular, the average retail price of A-92 and A-95 petrol produced to DSTU 4063:2001 standards will be UAH 10.04 and UAH 10.27 per liter respectively.
Trade
THE COMPENSATOR FAILS
On the evening of November 15, Dnipropetrovsk-based Privat Group’s fuel retail operators, apparently convinced by the secretariat of the sectorial group of experts and analysts, simultaneously raised diesel fuel prices at their filling stations by five and then by 5-10 kopecks, although their margins remained almost the lowest level on the market. On November 17, other fuel retailers followed suit.
Raw Materials
WHAT THE FUTURE HOLDS
Ukraine is still rewriting the law on production sharing agreements (PSA). Last week, the lawmakers passed as the whole bill No. 3969-VI «…on an improvement in the procedure for concluding agreements on production sharing.» The amendments broadened the effect of the law, as state companies were granted access to projects being implemented under PSAs.
In Coming Issues
WILL THE RESERVES SAVE THEM?
The crises that are from time to time created on the liquefied gas market with the Ukrainian government’s silent consent are encouraging traders to create developed infrastructure to store propane and butane. The country’s total storage facilities have expanded by several times since 2008.
Will the reserves save local traders or will the stocks they accumulate simply prolong the agony of the Ukrainian gas market?
PETROL COCKTAIL RECEIPTS
Every consumer has the right to choose what petrol to put in their car, where to buy it, and at what price. But sometimes one can only pity a glittering ‘steel horse’ that won’t live a long life if its eats the wrong grass. What do they add to fuel today, and what can you do to protect yourself from unwanted additives? Remember the rule: the cheaper the sausage, the more strange its effects.
You can read full articles at the journal «Terminal: Oil Review» №47(581) 21 Nov 2011
