Page 15 - EurOil Week 46 2021

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OMV Petrom to unveil 2030 largest offshore oil terminals in the country, crossed from Belarus into Lithuania, the EU’s
and have not provided access to the group’s
easternmost point, this year.
strategy on December 7 oil product pipelines for transportation of
imported fuels, the CPC said.
OMV Petrom has announced that it will The CPC also noted that by creating Hungary to cap petrol, diesel
unveil its development strategy for the years barriers to the import of fuels into
until 2030 on December 7. the country Lukoil Bulgaria may prices to rein in inflation
The new strategy reflects the company’s have forced local companies to redirect
growth plans and its commitment in terms demand for fuels of local origin, like those Hungary’s government set the maximum
of energy transition, in the context of climate produced by Lukoil Neftochim Burgas, the price for petrol and diesel at HUF480 per
change, according to a note to investors. country’s sole oil refinery. litre from November 15 for a three-month
The company may announce the year In 2012, CPC first established a cartel period. Shares of Hungary’s oil giant MOL
2050 as the target for becoming carbon between Lukoil and four other fuel retailers, plunged 4.8% on Thursday, wiping off
neutral, according to sources familiar only to deny its revelations a few months HUF80bn (€219mn) of its market value.
with the planning process within the later. Five years later, in 2017, CPC again The decision came after calls by the
company, reported Economica.net. failed to find evidence of a cartel among fuel opposition to lower fuel prices, which
The strategy involves investments of about retailers. contributed 1.9pp to a 6.5% spike in
€10bn, to be committed by 2030, the vast In 2019, CPC ended another probe, inflation in October, a nine-year-high.
majority of money being allocated to projects concluding that there was no evidence of “We trust that this will mean support
in Romania. violation on the fuel retail market by Lukoil. for the economy and contribute to a
A quarter of the investments will be reduction in inflation,” cabinet chief
allocated for completely green energy Gergely Gulyas said at a weekly briefing on
projects. Belarus’s Lukashenko November 11.
The projects would focus on generating Hungary is the second country in the
electricity from renewable sources, menaces EU with gas cut- EU after Croatia to put a cap on motor fuel
production of sustainable second-generation prices. Unlike in its southern neighbour,
biofuel and carbon capture and storage off amid border flare-ups Hungary’s retail prices will be slashed
facility. by more than 25% from next week, the
The company has already announced a Belarusian ruler Alexander Lukashenko steepest one-day drop for 90 days. On
pilot carbon capture and storage project at suggested on November 11 that he could March 18, 2020, motorists saw a 20%
the Petrobrazi refinery. shut down the natural gas transit to Europe decline in retail fuel prices.
The network of car charging stations will via Belarus in retaliation against any new Fuel prices have hit the psychological
also be significantly expanded. European Union sanctions imposed over level of HUF500 per litre three weeks ago
his handling of migrants on the border with and continued to edge higher, putting
Poland and Lithuania. pressure on the government that is
Bulgaria’s antitrust body a “hybrid attack” on the bloc by organising preparing to extend its mandate in the
The EU has accused Belarus of mounting
2022 elections. In an interview two weeks
rules local unit of Lukoil irregular migration and encouraging ago, Viktor Orban did not rule out such
thousands of people to cross into Poland and
intervention but warned of the negative
abused dominant position Lithuania. impacts and said that such a move can be
Lukashenko has dismissed the
temporary.
Bulgaria’s Commission for Protection of allegations, and said that he could cut the Fixed prices will expire on February 15,
Competition (CPC) said that it has found Yamal gas pipeline that carries Russian gas unless extended, two months before the
evidence of abuse of dominant position across Belarus to Poland and Germany in election.
by fuel retailer Lukoil Bulgaria and of oil response to any EU sanctions. The government will not compensate
refinery Lukoil Neftochim Burgas, both units “We are heating Europe, and they are still traders for the measure, Gulyas said,
of Russia’s Lukoil. threatening us that they will close the border. adding that petrol stations breaching the
CPC launched a probe into Lukoil And if we shut off natural gas there?” the rules will be shut down.
Bulgaria earlier in November following a Belarusian state news agency BelTa quoted The tax content of fuel will remain
complaint by OMV Bulgaria. Lukashenko as saying. unchanged, hence the margins of retailers
CPC said in a statement it has identified “Therefore, I would recommend that the will be cut and companies will not be
issues related to restriction of access to Polish leadership, Lithuanians, and other compensated. Half of the retail price of
tax warehouses and fuel transportation headless people think before speaking,” he fuel is composed of taxes. Europe’s highest
infrastructure which can impede imports of added. VAT, 27% is slashed on the retail price plus
motor fuels by Lukoil’s local competitors. Although there was no immediate the excise tax.
Lukoil Bulgaria owns the largest storage response from Russia, Moscow reacted Analysts said the government had no
and fuel transport infrastructure in Bulgaria, angrily in the past when Ukraine, another room to lower the excise tax due to the
making the fuel retailer and the refinery transit country, disrupted gas supply to the weaker forint. The EU sets a minimum of
dominant on the local motor fuel storage West. €0.36 per litre on fuel. Hungary’s budget
market. The two companies have abused The EU Economy Commissioner Paolo revenue from the excise tax on fuel is
their dominant position as they have not Gentiloni said on November 11 that the bloc around HUF100bn per year.
provided services for reception and storage of “will not be intimidated by Lukashenko’s The price cap will all but erase the
fuels in their own tax warehouses, restricted threats”. MOL’s margin on fuel sales. As the price
access to tax warehouses connected to the Over 4 200 irregular migrants have cap will not apply to premium vehicle

Week 46 18•November•2021 www. NEWSBASE .com P15