Page 14 - EurOil Week 06 2022

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Belarusian oil products that are currently for crimes committed by employees of Head of market researcher GKI, Laszlo
being transported through the Baltic Bulgargaz and the Energy and Water Molnar, expects the government to extend
nation’s territory, Bloomberg has reported. Regulatory Commission (KEVR),” one the price cap for political reasons. Without
In doing so, the government in Tallinn of the two prosecutors in charge with the the price freeze, one litre of fuel would
joins fellow EU member Lithuania in case, Marian Aleksandrov, told reporters as cost HUF520 per litre. Global oil prices
raising pressure on Belarus. That country’s quoted by Dnevnik news outlet. are expected to hit $100, according to
leader, Alexander Lukashenko, became the In its statement, the prosecution also economists.
target of measures after claiming victory noted that, according to the already The government is likely to take a decision
in a 2020 election widely condemned provided documents, the management of in the coming days to extend the price freeze
as fraudulent, and for mounting what Bulgargaz was not connected to the deals Officials of Hungary’s National Tax and
Western officials have called a hybrid that have secured more expensive gas for Customs Authority (NAV) have found just
attack by helping immigrants cross the the country. 12 violations of the price cap rules in a probe
EU’s eastern border. Petkov has said that the hike in the of more than 2,000 petrol stations and levied
The decision came after a newspaper natural gas price in Bulgaria since the penalties of HUF3mn, the finance ministry
investigation revealed this week that beginning of the year was to a large extent said.
companies in Estonia, including state- due to the decisions of Bulgargaz’s former
owned Operail, had circumvented management.
sanctions on Belarusian oil exports by The difference between prices of Gas flows to Turkey’s
re-labelling the goods under a different the natural gas sold by Azerbaijan and
product code. Bulgaria’s main supplier Gazprom is industrial plants to be fully
“We have decided to impose an “so huge that giving up [any] amounts
additional sanction from the Estonian with any excuse, which then turns out restored as of February 8
state, which would also sanction the goods to be invalid, damages Bulgargaz and
with the code 2707 for coal-based oil,” consumers”, Petkov has said. says BOTAS
Prime Minister Kaja Kallas said. Bulgarian Energy Minister Aleksandar
Estonian Foreign Minister Eva- Nikolov accused Bulgargaz earlier in Gas flows to Turkey’s industrial plants will be
Maria Liimets said Estonia would also January of failing to import 1 bcm of fully restored as of February 8, state pipeline
recommend that the same restriction be natural gas from Azerbaijan at a lower operator BOTAS said on February 7. In late
applied at the EU level, adding that she price than the gas it buys from Russia’s January, authorities temporarily limited
had consulted with her colleagues from the Gazprom. Nikolov even suggested that natural gas use after Iran stopped its gas
other Baltic countries. Lithuania has also by amending contracts with Azerbaijan flows to Turkey, claiming pipeline difficulties.
called on the EU to expand sanctions on Gas Supply Company (AGSC), Bulgargaz Gas usage was restricted in a first phase
Belarus. made imports from Azerbaijan impossible. of cuts by 40% and then in a second phase
Instead, Bulgargas was importing more by 20%, causing industrial plants across the
expensive natural gas from Gazprom. country to pause operations.
Bulgaria’s prosecution Bulgargaz and AGSC, the Greece-Bulgaria caused Turkish authorities to order gas-
According to the contract between
The Iranian gas flow disruption also
says it lacks evidence of gas link is one of the ways to deliver gas fuelled power plants and industrial facilities
to lower electricity use.
from Azerbaijan. The completion of the
crime by Bulgargaz’s former gas link has been delayed, but Nikolov
claims that Bulgargaz was still able to
management import the full amount agreed with AGSC. Croatia to cap fuel prices

Bulgaria’s prosecution has not received again
enough evidence by the Ministry of Smaller Hungarian petrol
Interior that the former management of Croatia’s government decided on February
state-owned gas supplier Bulgargaz had stations feel pain of capped 7 to put again a cap on surging fuel prices
committed a crime leading to high gas to help people two months after lifting
prices in the country and cannot press fuel prices the previous one, Prime Minister Andrej
charges, it said in a statement on February Plenkovic said in a statement following a
8. The extension of the fuel price cap could regular government’s session.
On January 28, the whole management lead to a wave of bankruptcies of smaller, The decision, which takes effect
of Bulgargaz was fired by Bulgarian independent petrol retailers, warned immediately, was made amid rising tensions
Energy Holding (BEH), which manages Hungary’s Hungarian Petroleum Association. in the country due to the accelerating prices.
the state-owned energy companies, over Just on Monday, three companies went out of “Given the expected rise in oil prices,
its decisions related to the purchase of business. we have decided to re-adopt a regulation
additional amounts of cheaper natural gas The government froze petrol and diesel limiting the price of the eurosuper 95
from Azerbaijan. prices at HUF480 (€1.35) per litre for a petrol at the existing [level of] HRK11.37
At the time, Prime Minister Kiril Petkov period of three months from November 15 to (€1.51) […] and it will remain for the next
said that the management was dismissed rein in inflation, which hit a 14-year high at month, while the price of diesel will stay at
after the authorities found out 1bn cubic the end of the year. Retail vehicle fuel prices HRK11.29,” Plenkovic said.
metres of gas could have been imported had earlier edged over HUF 500/litre at many The government will also limit the price
from Azerbaijan even though Bulgaria’s gas stations in Hungary, a historic high. High of the diesel used in agriculture and fisheries,
link with Greece has not been completed fuel prices and surging inflation have put setting it at HRK6.5 per litre.
yet. pressure on the government, which is facing The price of premium fuels will not be
“We have not yet received much of the a tight election in April. frozen.
documents in the pre-trial proceedings

P14 www. NEWSBASE .com Week 06 10•February•2022