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More and more Ukrainians opting for imported petrol
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23 February 2011
More and more car owners are opting to buy imported petrol, despite its relative high cost, according to the Dzerkalo Tyzhnia.Ukraine (Mirror Weekly) newspaper.
William Kozik, the head of the Shell filling stations chain, told the publication that sales are growing in the chain, even though its prices are higher than those at filling stations that are under control of Ukrainian oil refineries.
"We attract more and more clients using marketing instruments, and the filling stations that are under the control of Ukrainian oil refineries have to permanently reduce prices so not to loose their consumers. They are trying to fight with us using manipulations with duties and administrative pressure," the Shell representative said.
Kozik said that it is unprofitable to buy fuel from oil refineries in Ukraine, as their selling prices are set at a level so that other filling stations can earn nothing.
"We're ready to buy Ukrainian products with the observation of two simple conditions: the quality of the products and readiness to sign long-term agreements similar to those we sign with foreign suppliers," he said.
He said that theoretically cooperation with Ukrainian oil refineries would be simpler and more convenient than foreign economic activities linked to currency risks, long transportation and the need to interact with the Ukrainian customs service.
"No one guarantees anything in Ukraine. Despite years of talks, no refinery has started using long-term contracts with clients," Kozik said.
"In the past five years two or three million foreign cars were imported to Ukraine and they consume high-quality Euro-4 and Euro-5 standard fuel … taking into account experience in the automobile sector, where duties on imports have existed for a long time, any protectionist measures result in a poor outcome for the state," said Oleh Nazarenko, the president of the All-Ukrainian Association of Automobile Importers and Dealers.
Source: Interfax-Ukraine
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