ŠKUNDRIĆ: Price of fuel may rise by up to 3%

- The prices of fuel in Serbia may be increased by up to 3% due to high costs of refining in the Petroleum Industry of Serbia (NIS) - the Minister of Energy and Mining of Serbia, Petar Škundrić, estimated.

He said in the interview for Beta agency that NIS and other companies that used the services of that company related to oil refining and trade in oil derivatives had asked for increase in prices of derivatives in the market of Serbia.

- Some minimal percentage by which the prices should be increased can be determined, but it must not be higher than 3% - said Škundrić.

As he explained, the Ministry of Energy of Serbia has come to the viewpoint that the costs of oil refining depend on good or bad organization in the company that refines oil.

- We are of the opinion that the state should not determine the price of oil refining services, especially now when it is the minority owner of the Petroleum Industry of Serbia - said the Minister.

Serbia as a state should determine the framework and maximum prices of derivatives in the market at this moment.

The Management of NIS said on May 18th that the company registered losses when it had refined oil for other customers and added that the realistic price of refining of one ton of oil was 52 USD, and not 29 USD as it had been determined in 2005.

The Director General of NIS, Kiril Kravčenko, estimated that the increase in price of oil refining would lead to increase in price of fuel by 2.5%.

NIS a.d. Novi Sad

Ministry of Energy

Petar Škundrić

Petroleum Industry of Serbia

NIS

Kiril Kravčenko