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Serbia: Fuel supplies obligation open space for private public partnership

A representative of the German Agency for storing petroleum products, Mr. Tomas Kal, said that countries, when enter the EU, must establish emergency fuel supplies, so our country would have to do it as well. While he was in Serbia in March this year, said that he found out, that Serbia has ten times less oil reserves than prescribed.

Serbia has only 10% of necessary amounts in its supplies. Opportunity to fill the warehouses until the “black gold” could be bought cheaper at the beginning of the year, is missed.

In case that in Serbia all sources of oil supply and its derivatives “dry up”, Serbia would independently, from its reserves have a fuel for only 18 days. In the warehouses on the state inventory, our country has about 50,000 tons of oil equivalent, which is ten times less than the EU regulations prescribed. However, reserves are increased, allowed by changed regulation of the procurement plan and criteria for the formation of mandatory oil reserves, adopted by the Government of the Republic of Serbia at the beginning of the month.

By 2023, we must have up to 500,000 tons of oil equivalent, which is an average daily consumption of oil and its derivatives for 61 days.

A representative of the German Agency for storing petroleum products, Mr. Tomas Kal, said that countries, when enter the EU, must establish emergency fuel supplies, so our country would have to do it as well. While he was in Serbia in March this year, said that he found out, that Serbia has ten times less oil reserves than prescribed.

– Fulfilling the requirements related to emergency stocks is an expensive venture, but due to low oil prices, they can now be obtained cheaply – said Kal four months ago.

The opportunity to favorably collect oil reserves – was missed. Crude oil, in comparison to last winter, fully recovered, and jumped by for 85 %.

Serbia, according to the proposal, should provide the oil reserves and its derivatives for 18 days, and in 2015, we had supplies for 14.5 days – explains Mr. Tomislav Micovic, from the Association of Oil Companies of Serbia. – We had the option to decide to determine the oil reserves according to two criteria – the first is to calculate the average daily imports for 90 days, and the second is to calculate the average daily consumption for 61 days. Serbia has chosen the second method, but the necessary supplies are on a similar level, and they change every year, because they are calculated in relation to spent from previous. It would be ideal that we buy oil for commodity reserves when the price was at historic minimum. Now it is much more expensive.

Supplies are used in extreme and emergency situations, such as earthquakes, declining river levels and prevent river traffic … State buys reserves from the fees that each liter of fuel is paid by manufacturers and resellers – 2.6 % per liter on petrol and diesel. When VAT is added to, it amounts to 3.12 RSD per liter on fuel.

No one keeps LPG

FEES for the formation of mandatory oil reserves is paid by producers and traders in diesel, LPG and gasoline. However, the reserves are primarily stored diesel, and then smaller amounts of crude oil and gasoline, while the LPG is not at all kept in the state reserves in case of emergencies. So, if the manufacturers and resellers of LPG lost it, if it comes to imports disabling, earthquakes or similar problems – they would not have where to get it from, transmits Serbia-energy.eu

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