Reducing demand for oil intensified the competition among traders. Market participants are trying to equalize the price of its own gas stations with the main rival - the group “Privat”. For the first time they did last week, when Igor Kolomoisky, who lost access to cheap petroleum products in large opte, picked them up at their stations by 4%. But this is the price equation can be considered a temporary phenomenon, since last week Dnipropetrovsk businessman has invented a new way to access to affordable oil.

tough competition for consumers started last summer. Its instigator was Igor Kolomoisky, gas stations which ( “Sentosa Oil, Maveks”, ANP, etc.), high octane fuel was sold at 20-30 kopecks. /L cheaper than other market participants. He could afford such dumping by the fact that buy raw material under their control the country”s largest state-owned company OAO Ukrnafta about $ 20/barrel.

This disposition did not suit the opponents “Privata”, which bought the black gold at market prices (about $ 70/barrel). So they decided to block access to cheap raw materials from Dnepropetrovsk, as well as have the consent of the Ministry of Economy to amend the conditions of the auction, which realized Ukrainian oil.

example, in August 2009 Office of Bohdan Danylyshyn proposed to tie the starting price on the domestic black gold to the world”s quotes. “The initial cost should not vary by more than 5% of the average world oil prices over the last 10 days prior to the auction,” - said the ministry.

If such rules are in force, Igor totally would have lost its price advantage in the market. Therefore, “Privat” pretended to heed the wishes of the officials, and began with the September 2009 to buy oil at auctions twice as expensive as usual (up to $ 50/barrel). Economy Ministry has decided to abandon plans to reform the rules for bidding on its sale.

But parallel Dnipropetrovsk businessman has invented another way to savings, which allowed him to maintain price leadership in the retail market of petroleum products. Controlled “Privatu” Kremenchug oil refinery plant switched to production of so-called components of gasoline KB-92 and CB-95 (less than counterparts of traditional high-quality petroleum products that can sell to consumers).

This Kremenchug oil refinery began a monthly savings of around 50 million UAH. Excise on: the rate of charge for the components is 20 euros /tonne (for freight gasoline - 110 euros /ton). But a month ago, Cabinet announced his intention to block this channel cheap petroleum.

“We plan to abolish the technical conditions for the production of gasoline components of CB-92 and CB-95. This decision will level the playing field on which the participants are working on oil products market,” - said recently the head of the State Committee for Regulatory Policy and Entrepreneurship Alexander Kuzhel.

In such a situation the only possibility for “Privata” to continue to price dumping in the market - to return to the procurement of raw materials Ukrnafta “on the cheap. But market participants ahead of Mr. Kolomoisky, having achieved the end of last year of the intentions of the Ministry of Economy. December 23, 2009 Cabinet decision of his number in 1405, introduced changes in the position to organize and conduct auctions for the sale of oil, which tied the price of black gold, national origin, sold at auction, to the customs value of Russia”s oil, which is imported to Ukraine.

“The level of the starting price of oil is determined on the basis of Customs Service of its customs value within ten days preceding the date of the auction. Bidding is suspended, if the starting price of oil with the same qualitative characteristics and basic conditions of supply varies by more than 10% “- says the government order.

In such circumstances, the Dnepropetrovsk group had no other choice but to raise prices on its own gas stations. This historic event took place last week, when for one day cost the most popular petrol A-95 to privatovskih stations rose by 4% - to 7,5 UAH. /Liter. Thus, the price gap between Igor and his opponents had been reduced from 40 to 10 kopecks. per liter. But the market for petroleum products have already seen Igor Kolomoisky gets out of the sleeve of the next ace of trumps.

Last week, the District Administrative Court of Kyiv on the suit “Ukrnafta suspended the aforementioned Cabinet decision number 1405, which amended the rules of Ukrainian oil sales at auctions. With this next auction for its sale, scheduled for Jan. 26 will be held on the old rules, which allow “Privatu” cheap to buy black gold.

In such circumstances, Dnepropetrovsk business group can once again affordc9dto draw away from competitors by lowering prices for its gas stations. Therefore, market participants certainly will try to persuade the government to reverse the decision Adminsuda a higher court. But by this time the dreamers of “Privat” will certainly be able to invent a new way to save money, which enables them to establish a price attractive to motorists.

 

Dmitry Ryasnii

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