TNK-BP to hike aviation fuel price for Ukraine in Oct
KYIV. Sept 12 (Interfax) - TNK-BP is proposing to increase the price for the aviation fuel in produces in Ukraine by an average of $130 per tonne for the domestic market next month, the company press service said.
"In light of the aviation fuel shortage both on the domestic and external markets its cost has risen, which does not allow us to continue to hold the price for fuel we sell at the previous level. The company basically has to move to imported resource and in October will index prices for its counteragents. The price increase will be no more than 15%," the press service quoted director of the business marketing department at TNK-BP Commerce LLC Kirill Molodenkov as saying.
TNK-BP's view is that high prices for imported fuel from foreign producers and the impossibility of fully supplying the domestic market with oil products made in Ukraine due to unequal competitive conditions is what is driving prices up.
"Lisichansk Oil Refinery, due to loss-making oil-product production for the domestic market, was compelled to reorient a large part of capacity to refining crude on a tolling basis. As announced earlier, of 410,000 tonnes of oil planned for processing at [the refinery] in September this year, only 40,000 tonnes will be processed for the internal Ukrainian market. The production in this volume of aviation fuel will be able to cover only 15% of TNK-BP clients' needs in Ukraine," the statement says.
With the aim of taking pressure off the market, the company has initiated the certification of JetA1 fuel, and is also making efforts to speed up documentation that would allow using a blend of TS, RT, and JetA1 as an aviation fuel.
TNK-BP's business is represented in Ukraine by TNK-BP Commerce (involving a management center, oil-product wholesaling on the domestic and external markets, and coordinated investment policy), the joint venture Kersher LlC (oil-product retailing), and ChAO LINIK, which operates Lisichansk Oil Refinery.
