Liquefied petroleum gas (LPG), an alternative many Romanian car owners have resorted to in the face of rising petrol and diesel oil prices, has registered the steepest price increase among all fuels compared with the same period last year.
Thus, depending on the distribution company, hikes ranged between 40% and 50%, above the around 20-25% price increases posted on average in the sale price of petrol and diesel oil, and also above the price increases that were seen in some European countries compared with the same period of last year.
The trend of oil prices internationally has influenced the LPG sale price domestically. Besides this factor that had a major impact over all types of fuel, the particularities of the Romanian market were the main reason that pushed LPG prices up by almost 50%.
"Rompetrol group, through the LPG unit Rompetrol Gas, has registered a 39% increase in the average LPG sale price since the beginning of this year compared with the similar period of last year, amid a hike of around 60% in raw material (...)," explained company representatives.
Despite this increase, companies say they are registering positive results this year in terms of demand for this type of fuel. The reason is quite simple: economic growth steps up transport activities and implicitly demand for this fuel.
"One factor that contributed to the trend of our turnover is the high LPG demand amid national economy growth," say the representatives of Butan Gas, a company that saw turnover rise by 48% in the first six months of this year compared with the same period of 2007 amid 33% bigger sales in volumes in the analysed period.
"The increases in prices Rompetrol operated for classical fuels in the same period cannot be compared with those for LPG as market conditions and demand for these products are totally different," explain Rompetrol representatives.
Despite price hikes, autogas is still the cheapest fuel.
The largest part of the LPG market, namely 55%, is represented by the gas cylinder market, which has followed a downward trend in recent years, the autogas market, the only segment registering significant annual increases and cumulating around 35% of the market, and small bulk, with a 10% weight, which is stalling. Players in the field say the market will revolve around 550m dollars this year (around 390m euros), meaning sales of around 500,000 tonnes.
The market is expanding considering the value of sales amounted to 360m euros a year ago, almost 10% more than in 2006.
The main players on the market are Petrom LPG, with a market share of around 40%, Rompetrol Gas, which will reach a 15% share this year, Crimbo Gas and Butan Gas.
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