NIS increasing refining, part of fuel reserves going to other oil companies

NIS will make around 23,000 tons of its operational reserves available to other oil companies that currently have a higher demand for derivatives from the domestic refinery, in order to ensure stable market supply in August, said Minister of Mining and Energy Dubravka Djedovic Handanovic after a meeting with representatives of the Association of Oil Companies of Serbia (UNKS) and Naftna industrija Srbije (NIS).

The topic of the meeting was the delivery of petroleum products in the conditions of several weeks of low water levels in the Danube and the analysis of plans for import and consumption of derivatives in August, as well as possible solutions for overcoming difficult supply conditions.

Djedovic Handanovic emphasized that the extension of the operating license of NIS until August 28 had enabled the continuation of petroleum product production, which was of the utmost importance for the stable supply of the domestic market at that moment, given the difficulties faced by companies that purchased fuel from imports.

According to her, NIS announced that in the second half of the month, when the already ordered crude oil deliveries could arrive, it would increase processing from the then approximately 9,500 tons of crude oil per day to approximately 13,000 tons per day.

She stated that the use of NIS’s operational reserves would contribute to meeting the expected demand in August of approximately 200,000 tons of petroleum products, while preserving state reserves for situations of extreme emergency.

The minister added that this measure had already yielded results in the case of other oil companies that had previously submitted a request for the use of operational reserves of Eurodiesel. At that time, as she stated, approximately 19,000 tons of Eurodiesel had already been released from the oil companies' reserves, which contributed to stabilizing the market and meeting demand in July.

When it comes to imports, around 39,000 tons of diesel are planned to be delivered in August, the same as in July, but around 20,000 tons are planned to be delivered by water. Due to the record low water level of the Danube, the delivery of these quantities is uncertain, which is why transport is being organized by rail and tankers.

Djedovic Handanovic assessed that this method of transport enabled the delivery of smaller quantities and brought higher import costs for oil companies, especially in conditions of limited prices.

– Regardless of all the problems and challenges we face, we will protect citizens from a sudden increase in prices, and our reserves are sufficient in case of need to use them to ensure the supply of the domestic market – said the minister.

She also pointed out that the situation was further complicated by problems with stock market quotations, Russia’s decision to ban the export of petroleum products, as well as increased demand in the Mediterranean after Turkey had bought a million tons of diesel.

Also, the ban on the export of oil and oil products, including Euro diesel, has been extended until the end of August, in order to preserve available quantities for the domestic market.

Ministarstvo rudarstva i energetike Republike Srbije

Udruženje naftnih kompanija Srbije Beograd

NIS a.d. Petrol Rafinerija nafte Pančevo

NIS a.d. Novi Sad

Ministry of Energy

NIS

Association of Oil Companies of Serbia

Pančevo Oil Refinery

Dubravka Đedović Handanović

petroleum derivatives

transport

Danube water level

import of derivatives