Retail fuel surcharges not high enough in Belarus - Belorusneft

<p> MINSK, May 5 - PrimePress. In Belarus, the level of retail mark-ups for motor fuel is insufficient for further development of the petroleum products supply system of the country. </p> <p>   </p> <p> Belorusneft Deputy Director General, Chief of Crude Procurement Sergey Kamornikov made a statement to this effect at an extended session of the Public Advisory Council of the Belneftekhim Concern. </p> <p>   </p> <p> The Belorusneft petrol station network is the largest in Belarus, comprising over 570 petrol stations. To stabilise retail prices, Belneftekhim has limited wholesale and retail mark-ups to no more than 7-10%, depending on the type of fuel. </p> <p>   </p> <p> According to Kamornikov, the closure of national borders, reduced business activity, and restrictive anti-epidemic measures had a negative impact on road traffic in 2020. Sales of petroleum products at some near-border filling stations dropped 10-fold, and it was possible to return to the 2019 level of motor fuel sales only in March 2021. </p> <p>   </p> <p> In such circumstances, the current level of retail fuel surcharges is insufficient for further development of the system. For several years now, retail sales of petroleum products have been unprofitable for the petroleum product supply system. These losses are covered by other activities, the Belneftekhim News Bulletin reports citing Kamornikov as saying. </p> <p>   </p> <p> The cost of maintaining a stable petroleum products supply system is also high. Belorusneft alone keeps stocks of light petroleum products in the volume of more than 100 thousand tonnes, which requires constant investments into maintenance of the tank farm, tank farms in general and logistics of petroleum products supply. </p> <p>   </p> <p> Since trade mark-ups on motor fuel have remained unchanged for a long time, retail sales do not bring in substantial profits for retailers or revenues for filling stations. </p> <p>   </p> <p> According to Kamornikov, the lack of funding sources is evidenced by a sharp decline in the number of filling stations being commissioned and reconstructed since 2016. “Getting only 15 facilities renewed annually is not enough to maintain the level of development of the system in the medium term,” he said. </p> <p>   </p> <p> As previously reported, Belorusneft State Production Association (Rechitsa, Gomel Oblast) plans to build three new filling stations in 2021, reconstruct 12 filling stations and upgrade 21. Belorusneft built four new filling stations and reconstructed nine in 2020. </p> <p>   </p> <p> After the reconstruction and modernization, roadside filling stations will operate as multifunctional all-in-one complexes that will offer a wide range goods and services. </p> <p>   </p> <p> Belorusneft was founded in 1966. The company specializes in exploration works, oil extraction, gas processing, and offers a wide range of seismic exploration operations. </p> <p> Belorusneft provides oil extraction services in Russia, Ukraine, Venezuela and Ecuador, facilitates crude supplies to the Belarusian oil refineries (Mozyr Oil Refinery, Gomel Oblast, and Naftan OJSC, Novopolotsk, Vitebsk Oblast) on a give-and-take basis. Belorusneft sells oil products through its own chain of refilling stations and trading companies, and is engaged in the oil product export. End </p>

2021-05-06

Primepress