The price of fuel continues to rise, and among the reasons are the diesel shortage in Europe, difficulties with deliveries and higher costs for transport and insurance. This was stated by the special commercial manager of "Lukoil Neftochim Burgas" Evgeni Simeonov in the studio of "Denyat ON AIR".
He categorically rejected the claims that the refinery is buying more expensive oil. According to him, deliveries are currently being made at significantly lower premiums compared to some previous periods.
"To claim that oil is currently being purchased more expensively than in previous months is categorically false", said Simeonov.
After he entered the management of "Lukoil Neftochim Burgas" in June, deals were concluded at premiums to Brent of 3.75 and 4 dollars, while in an earlier period Iraqi oil was purchased at a significantly higher premium, it became clear from the words of the special manager.
There is no Russian oil in the refinery
Simeonov also commented on the information that the refinery may use Russian oil, which will be presented as Kazakh. He was categorical that there will be no such deliveries.
"The special commercial manager, in my person, is an absolute guarantor that Russian oil is not being bought, and will not be bought"
Simeonov explained that part of the oil arrives through an operation between two tankers due to the limitations of the port in Rosenets. According to him, it can accept ships up to 80 thousand tons, while Suezmax tankers can carry about 140 thousand tons.
"These tankers are unloaded in one way. This is the so-called STS operation, which is carried out in close to the territorial waters of Bulgaria, where the two tankers are paired and the oil in question is transferred to a smaller one, which manages to enter the port in Rosenets," Simeonov explained on the air of Bulgaria ON AIR.
He also rejected allegations of deliveries of low-quality or smuggled oil. Kazakh oil is purchased by large international companies, including Chevron and Vitol, and deliveries can be tracked.
"Each ship is tracked, and a report from the "Customs" agency can be requested by any service to see what kind of oil enters the territory of the Rosenets port," said the special manager.
Why are fuel prices rising?
According to Simeonov, the current situation on the market is the result of a combination of factors. He pointed to the closure of dozens of refineries in recent years, restrictions around the Persian Gulf and the Strait of Hormuz, as well as attacks on Russian refineries by Ukraine.
This leads to a shortage of diesel on the European market and, accordingly, to an increase in prices.
"We have a deficit of one commodity and the price is rising", Simeonov explained.
Added to this are the higher insurance costs for ships entering the Black Sea due to the risk of drone attacks. These costs ultimately affect the price of the final product.
Simeonov also explained why the refinery works with different types of oil. "Lukoil Neftochim Burgas" is designed to process Urals-type oil, and by mixing different types of raw material, characteristics close to it are sought.
"To date, over 52 types of oil have been processed", he said.
Profit, taxes and column prices
The special manager also commented on the financial condition of the refinery. After the introduction of tender procedures for the purchase of oil and the export of finished products, the results since July have been positive.
"From July to today, the results have been positive. So, if we continue in this way, at the end of the year we will pay the corresponding amount of corporate tax", Simeonov said.
However, he specified that it is still too early to talk about excess profit, since there were also months with a negative result during the year. According to him, the final bill will become clear at the end of the year.
Simeonov also commented on the fuel surcharge. He stated that both "Lukoil Neftochim Burgas" and "Lukoil Bulgaria" operate with a minimal margin.
"I want to assure the viewers that currently both "Lukoil Neftochim Burgas" and "Lukoil Bulgaria" operate with a minimal surcharge."
According to the guest, artificially reducing prices would create problems for the company and for other companies on the market. The reason is that prices must follow stock exchange levels in order to provide funds for the purchase of the next quantities of raw material.
Simeonov admitted as a possible scenario changes in VAT or other mechanisms to support consumers, but emphasized that this depends on the financial account for the state.
He also supported the possible lifting of the ban on diesel exports, since in his opinion the refinery produces more than is needed for the domestic market.
"We will be able to generate additional profits and we will be able to pay additional taxes. And they will go into the treasury", Simeonov concluded.