Media outlook in July 2005 | |||
The Ministry of Fuel and Energetics faced the sheer number
On July 26 the Minister of Fuel and Energetics of Ukraine Ivan Plachkov had a meeting with the top managers of the major oil companies of the country, dedicated to the situation at the oil products market. From the oil companies the meeting at the Ministry of Fuel and Energetics was attended by the First Vice-President, Managing Director of TNK-BP Ukraine Sergey Lisunov. The top managers of the companies told the Minister, that they would be forced to raise the selling prices for the oil products at least by 10% due to the fact that the State Tax Administration of Ukraine did not refund the VAT. Beginning from March the Tax Administration practically ceased the refunding of VAT to all oil processing companies, having deprived them of a huge amount of circulating assets. In response Ivan Plachkov promised to settle it down with the "taxmen". However, even if he will succeed to handle the question with refunding of VAT to the oil companies, the prices could still increase. The experts mentioned at once several reasons for the coming price surge. The main factor which influences today the internal prices is the cost of the oil. On July 20 all Ukrainian oil refineries purchased the oil for processing in August. And the average purchasing price made $395 per ton. In June the oil was sold at a price of $340 per ton. The experts are afraid that in the existing situation the Government could again decide to regulate the prices for the oil products. The previous attempt of such a fight with price increase for gasoline ended in an acute fuel shortage. The Press Department of the Ukrainian Cabinet yesterday informed that Yuliya Timoshenko added to her time-table a meeting on Thursday with the representatives of the oil companies taking into consideration the difficult situation at the market.
Source: Commersant-Ukraine