Company news in June 2004 | |||
TNK-Ukraine Trading House Draws Down Its Wholesale Prices for A-95 Gasoline by More than UH 300/Ton and Asks Its Jobbers to Bring It Down by UH 2.9/L at Retail Stations
TNK-Ukraine Trading House has cut down its wholesale prices for A-95 gasoline from UH 3,550 to UH 3,200/ton and recommends that its jobbers reduce retail prices for it to UH 2.9/liter, informed Mr. Sergey Lizunov, Senior Vice President of TNK-Ukraine Trading House, at a conference with representatives of approx. 50 jobber companies on May 8. He emphasized that TNK-Ukraine Trading House cannot make its partners abate prices but only informs them of the essence of its agreements with the Government for A-95 gasoline price reduction, which were achieved last week. When asked about the partners'' possible response to the price abatement recommendations, Mr. Lizunov noted that it depended on their goodwill, but he warned that the Government would regard non-digression of prices as violation of agreements and the ambition to generate excess profits. Commenting on the situation in the global oil market, Vice President of TNK-Ukraine Trading House expressed the opinion that the oil price growth is fueled by supply/demand re-allocation on this market. In his words, global oil consumption centers changed, in particular, demand for oil rises in China and India, and global demand for oil is expected to soar to 121 million bbd in 2005 (from 81 million bbd this year). In addition, against the background of declining crude oil production in Iraq, reserves in the Gulf of Mexico and the Northern Sea, the European market is re-divided, with Russian crude oil accounting for increasingly greater share, and the price differential between crude oil supplies to Europe and to Ukraine stands at $40-80 per ton for Russian companies, so oil will remain expensive in Ukraine.
Source: Interfax Ukraine