The FINANCIAL — According to the Association of Oil Products Importers and Distributors (NIA), 421,853,069 litres of petroleum and 410,307,045 litres of diesel were imported in Georgia in 2010.
In total 832,160,114 litres of oil products were imported (828,453,369 – in 2009). The largest share of imported oil belongs to Socar Georgia Petroleum, which during 2010 imported 175,570 tons of petrol and 233,100 tons of diesel (total: 408,670 tons, compared to 371,331 tons in 2009), out of which 221,000 tons of diesel was imported from Azerbaijan and 12,000 tons from Turkmenistan.
The largest taxpayer out of all oil importers is Socar, followed by Rompetrol, Lukoil, and Wissol.
Lukoil reported about its increase in import. The company said import consisted of 93,914,000 litres of petrol and 33,104,000 of diesel in 2010 (total: 127,018 tons, compared to 94,278 in 2009). Wissol is reporting 35% increase in Sales.
Oil importers say oil prices to increase further by 5-10 Tetri
Eko Georgia reported doubled increase in sales and import. The company said it imported 23,441,000 litres of petrol and 7,415,000 litres of diesel in 2010 (total: 30,556 tons in 2010, compared to 13,784 tons in 2009).
According to the official data provided by companies, when the total imported petroleum is 421,853,069 litres, and the sum of Socar, Lukoil and Eko Georgia, the rest is 128,928,069 litres which should be divided between Wissol and Rompetrol. However companies have not provided their import statistics.
As for diesel, according to NIA 410,307,045 litres of diesel were imported in Georgia, the official figures of Socar, Lukoil and Eko Georgia consist of 273,619,000 litres, and the rest – 136,688,045 litres – are divided between Wissol and Rompetrol.
Vasil Khorava, General Director of Wissol Petroleum Georgia, said that Wissol’s total sales at pumps in 2010 reached 270 million litres, with is 35% increase versus 2009.
According to NIA, Rompetrol imported 103,107 tons of petroleum and 36,357 tons of diesel in 2009.
Company Wissol imported 55,806 tons of petroleum to Georgia in 2009 and 28,001 tons of diesel, according to NIA.”
According to Vano Mtvralashvili, Head of the Union of Oil Product Enterprisers, Importers and Customers, 454,696,418 litres of petroleum and 373,756,951 litres of diesel were imported to Georgia in 2009.
The NIA names the same amount of petroleum imported to Georgia for 2009. However, data for diesel import is different – 372,199,446 litres.
The figures of imported petrol decreased by 32,843,349 litres, which is 7%. However, the import of diesel increased by 38,107,599 litres, which is increase of import by 10%.
According to the result of the year 2010, the largest taxpayer company is Socar Petroleum Georgia, contributing 150 million GEL to the Georgian budget, followed by Rompetrol Georgia – 78 million GEL, and Lukoil Georgia – 70 million GEL. Wissol Petroleum Georgia contributed 60 million GEL to the budget.
The key representatives of petroleum companies in Georgia declared there will be little increase in the price of petroleum in the near future.
“Despite the fact that during the last 2-3 months we have seen a significant surge in oil and petroleum product prices on the world market, we have only raised prices by 10-15 tetries,” said Khorava.
“The price of petrol is increasing throughout the world, even in those countries where oil is obtained. Companies like us are not interested in price increase, as lower price bring more realization,” said Shavleg Mishveladze, Deputy General Director at Lukoil Georgia.
As Mishveladze said, he cannot provide any optimistic prognosis from the dynamic side and the trend is still increasing.
As Davit Zubitashvili, Director of Socar Georgia Petroleum said, there won’t be any significant price change in the next 2-3 months, however the price change is totally dependent on international prices.
As company representatives declared, the year 2010 was more successful for their operations compared to 2009. However, for companies the challenges will remain expanding their chain, offering high quality products and service in 2011.
“2010 was the most productive and important year for Socar Georgia in the history of its operations in the Georgian market since 2006. Socar opened 35 petroleum stations in 2010, employing more than 600 individuals. Moreover, the total contribution to the budget was 150 million GEL that year and total investment in the Georgian economy – 52 million GEL,” said Zubitashvili.
As Mishveladze said, the year 2010 was successful for Lukoil, as well as growth realization dynamics and number of petrol stations opened, the amount of budget paid taxes increased by tens of millions.
For 2011 Wissol plans to further invest in infrastructure development, expanding petrol stations as well as adding additional business lines and services to exiting stations. Wissol became the exclusive representative of Total in 2010. According to Khorava, the company plans to introduce French oil and lubricants in its chain from February-March, 2011.
According to Zubitahsvili, Socar will have several challenges to face in 2011. As Zubitashvili declared, they have to sustain the position of being the biggest taxpayer to the Government, which is quite difficult due to high competition. Secondly, the company has to increase the number of stations up to 100, entering all the regions and large villages. Finally – high quality service and product and good relationship with society. Socar will be investing a further 50 million GEL in 2011.
One of the major strategies for Lukoil will be expanding the stations’ chain in 2011. Mishveladze declared that many new products will be offered to clients in the near future.
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