SNP (National Oil Company) Petrom, the largest oil company on the Romanian market, has reacted to the soaring quotations of crude oil on international markets and decided to raise petrol prices by about 8% at the end of last week, in one of the most spectacular price increases operated lately.
The move by Petrom, whose lead is to be followed by other players, might upset the inflation calculations for this year, especially after the unexpected 1.3% surge posted in July.
Petrom announced it would raise fuel prices at gas stations by 2,200 ROL/litre in the case of petrol, and by 2,300 ROL/litre in the case of diesel oil, following the surge in the price per barrel of crude oil on the international markets since the beginning of the year.
The company's management had announced as early as one week ago that it would propose a price increase to its majority shareholder, which is still the Romanian State.
"Over the last eight months, the price of crude oil has increased uninterruptedly worldwide, without any stabilisation trend as in previous periods, reaching values of about 44 US dollars per barrel, as compared to 32 US dollars per barrel, in January 2004," Petrom representatives say.
The company is importing "significant" volumes of crude oil to cover fuel demand on the domestic market. Petrom produces 6 million tonnes of crude oil, which meets about half of domestic demand.
Competrol, Petrom's fuel distribution unit in Bucharest, currently charges the following prices: premium petrol - 28,050 ROL per litre, unleaded premium petrol - 26,800 ROL per litre, euro premium petrol - 29,100 ROL, euro diesel oil - 24,700 ROL and super euro diesel oil - 25,100 ROL.
In its turn, private group Rompetrol, the second-largest operator on the domestic market, last Wednesday said it would raise fuel prices by about 10%.
Moreover, the fuel price increase operated by Petrom will be surely followed by the rest of the players.
"Romania has become a free market for fuel, and Petrom is beginning to react accordingly. MOL Romania is also mulling a fuel price increase by 2,200-2,300 ROL per litre," said the company's representatives.
Price increases ranging between 2,000 and 2,300 ROL per litre will also be operated by LukOil and by private petrol station owners.
The previous hike in fuel distribution prices had happened in July, having been generated by the increase in petrol and diesel oil excises.
At that time, petrol became 350-400 ROL/ litre more expensive, while diesel oil prices surged by 1,000 ROL.
Internationally, the crude oil barrel is still quoted very high amid the conflict in Iraq and soaring demand on the Chinese and Indian markets.
adrian.mirsanu@zf.ro
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