Media outlook in December 2009 | |||
New format
The traders are much concerned recently about the growing amount of counterfeited and contraband petroleum products currently taking up 10-15% of the market. Equal conditions must be created for all participants as well as the efficient quality control system of petroleum products and economic stimuli for modernization of refineries must be introduced in order to stabilize the market. This was reported by Sergiy Lizunov, President of TNK-BP Commerce LLC, in the course of the First International Conference for Development of Ukrainian Market of Oil Products. When characterizing the main trends of the oil market in 2009, Sergiy Lizunov emphasized that this year a low margin of refining and underloading of refineries were observed all over the world. In Europe refineries are loaded by less than 85%, while in Ukraine this figure is about 27%. Two out of six refineries located in Ukraine are constantly not operating. Mr. Lizunov recalled that by 2001 the relation of domestic and imported petroleum products in the market was 96% and 4% respectively, i.e. there was practically no import of petroleum products. In 2005, the customs duties for import of petroleum products were cancelled and thus the barriers for import flows have been removed. Today, the imported fuel makes about 50% of the consumption structure in the internal Ukrainian market. The President of TNK-BP Commerce dwelled on the problems of the oil market infrastructure. Mr. Lizunov noted that there's no acting oil product pipeline in Ukraine, whereas the rail transport turned into a “bottleneck” in the production logistics. The state-owned car fleet cuts down in size year by year, and it is very difficult for producers to operate both at export directions of shipping and in the internal market.
“We are facing the problem that with the increase of loading of the refinery we cannot ship a large quantity of goods in different directions at the same time. That's why alongside with the market development strategy a state strategy must be adopted for development of infrastructure and railroads as well as construction of pipelines into the key regions with obligations of producers to load these capacities,” Mr. Lizunov noted.
He believes that a “package” decision is required for development of the industry. The company hopes that in the short run it will be able to initiate the process of creation of the development strategy for the oil products market at the level of the expert and analytical group or the Council of Investors at the Cabinet of Ministers. “Then there will be normal planning of networks taking into account the market consumption and infrastructural development as well as planning of the production development,” Mr. Lizunov noted. Besides, there is a need in the effective dialogue with the Antimonopoly Committee, “in order for the state to observe normalization of the competitive environment, and for market participants to feel not only being potential violators but also being protected by this agency from noncompetitive actions.”Source: Energobusiness