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Oil refinery representative: gasoline supplies from Belarus to Russian Federation may affect prices at Russian market

Companies and Markets
18:00 | 27.11.2012 | Business-News
According to BUSINESS NEWS, the Ministry of Energy of Russia proposed to those Russian processors who process crude oil at Belarusian oil refineries to supply auto gasoline manufactured in Belarus to the Russian market. But this proposal meets with a mixed reaction of Russian processors, BUSINESS NEWS learnt from a representative of one of Russian companies.

"Processors are included in the structure of vertically-integrated oil companies which have their own sales network in Russia. As for gasoline manufactured in Belarus, today it is supplied to Russia, at price which is lower than a price set at the Russian market even taking into consideration logistics. This situation could seriously affect the market as the question is of supplies of some thousand tons of gasoline per a quarter", the source noted.  

 

He said that it is profitable for customers as prices will decrease but unprofitable for local manufacturers.

 

Previously it was announced that the Minister of Energy of Russian Federation Axexander Noval stated that Russia expect to get 2 -2.5 million tons of gasoline in 2013.

 

Vitaly Kryukov, analyst of IFD Capital, informed BUSINESS NEWS that every year Russia produce 37 million tons of auto gasoline (diesel gasoline exlusive) and sale over 33 million tons. According to the source, today the average retail price on AI92 gasoline in the European part of the country amounts to RUB 27.70, on AI95 gasoline – RUB 30.20.

 

Kryukov considers that Belarusian gasoline supplied to the Russian market including those that are supplied by processors will be in demand in 2013 as the prohibition of Euro 2 gasoline turnover in Russia enters into force as of January 2013.

 

Euro 2 gasoline will be manufactured but only for export supplies. This kind of gasoline will be prohibited for sales. Thus, “the volume of gasoline which can be substituted by supplied from Belarus decrease”, Kryukov considers.  

 

Previously Vladimir Semashko pointed out that Belarus is ready to supply oil products to Russia next year provided that these supplies are economically rational,. The profit margin of oil products export supplies under conditions of netback is USD 20-25 per ton for Belarusian refineries and it is hardly enough to carry out their reequipment plans, Semashko underlined.

 

Belarus is ready to supply high-octane gasoline to the Russian Federation even in case these supplies are just not loss-making, Semashko added. At the same time the First Deputy Prime Minister Vladimir Semashko noted that Belarus managed to ensure even higher profitability of gasoline supplies to Russia than gasoline supplies profitability to the third countries during last weeks. But the diesel gasoline supplies to Russia remain loss-making and the Belarusian manufacturers lose over USD 60-80 per ton. The Belarusian enterprises risk facing bankruptcy under these supplies conditions, Semashko pointed out.

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