Gas station owners: Fuel supply stable until December 1, uncertain after that

The owners of the largest gas stations in Serbia, after Naftna industrija Srbije (NIS), said yesterday that there would be enough fuel until December 1, and after that, if the Pancevo Refinery, which operates as part of NIS, stops processing crude oil due to sanctions, the supply to consumers will be uncertain.

NIS, as they told Beta, announced that if the supply of crude oil is not ensured by that date, it will suspend the delivery of petroleum products at the stations, regardless of annual contracts, and that retail chains will not be compensated because it is a “force majeure” issue.

The owner of the chain of 119 gas stations Knez Petrol, Srdjan Knezevic, said that he had increased the import of derivatives since the beginning of October by 17 to 20% because many private and state-owned companies, institutions, and factories, due to uncertainty with procurement from NIS, had begun to get supplies from his stations.

He currently supplies, as he said, 12,000 entities and approves deferred payment for up to 100 days.

He stated that, in addition to the fact that NIS, according to the annual contract, also supplies him with up to 60 percent of the derivatives that his stations need, he also imported fuel from Croatia, Romania, and Greece - by trucks, ships, and trains.

– In the event that the Refinery in Pancevo stops processing, we cannot replace the missing amount of oil derivatives on the market by importing them by means of transport – said Knezevic.

He stated that, in the preceding two weeks, fuel prices had risen by around five to six dinars per liter on the stock exchanges, not because of NIS, but because of oil prices.

Fuel transportation has not become more expensive, because, according to him, the state has come out to meet the needs of transporters and increased the excise tax refund from 15 dinars per liter to 35 dinars.

The owner of the Radun Avia gas stations, Jelena Radun, said that NIS had announced that from December 1, if the problem with sanctions is not resolved, it will not be able to deliver around 50 percent of previously contracted derivatives for the needs of that gas station chain.

– Now we buy derivatives as much as we can find from importers. It’s not easy – said Radun.

Fuel, according to her, is five to six dinars more expensive per liter and that cost must be borne by the seller because the state has “frozen” the prices of gasoline and diesel.

Serbian President Aleksandar Vucic said yesterday, at an open government session, that a final decision would be made seven days later on how to resolve the problem with US sanctions against Gazpromneft, which is the majority owner of NIS and, according to the decision of the US Treasury Department, must sell its stake and completely exit ownership.

This decision was made by the administration of former US President Joe Biden to punish Russia and prevent its companies from “financing the war in Ukraine,” and current President Donald Trump has not lifted it.

The sanctions were introduced on October 9 after eight postponements, and at the same time they also apply to the Croatian oil pipeline JANAF, which supplied NIS’s refinery in Pancevo with crude oil.

A few days ago, the US Treasury Department gave a new deadline of February 13 for Gazpromneft to exit ownership.

Knez Petrol d.o.o. Zemun

Radun Avia doo Novi Sad

NIS a.d. Novi Sad

Jelena Radun

Srđan Knežević

Pančevo Refinery