If the amount of importable raw materials available in the region declines, this will lead to an imbalance in the market, which will always have the effect of pushing up prices, the MOL Group’s managing director for value chain management said.
Szabolcs Szabó emphasized that the prices of crude oil, diesel, and natural gas can be very sensitive to the situation if passage through the Strait of Hormuz is not safe. Regarding a possible increase in fuel prices, the expert said that this depends on many factors.
The current situation is extremely precarious.
The managing director explained that the situation in this market is changing hourly and that a scenario could arise in which prices spiral out of control, but he did not want to get involved in number games. Even with regard to the short-term effects, there are still many question marks, he noted.
Graphic: Wikimedia Commons
The situation in our region is complicated by the fact that the Druzhba pipeline is currently not in operation and we cannot import the Russian oil that is technically best suited for us. If this situation persists, it could lead to problems in two respects. Firstly, it is uncertain how much alternative oil we can obtain via the Adriatic pipeline, and secondly, there is no such information to determine exactly how much diesel fuel can be produced from such alternative oils.
As there is already a shortage of diesel fuel in this region, we are likely to feel the effects of this,
Szabolcs Szabó noted.
Szabó Szabolcs (l1). Photo: MTI/Hegedüs Róbert
The CEO explained: When the Druzhba pipeline was shut down, MOL ordered petroleum from numerous alternative sources. In addition, both American and European sanctions allow MOL to transport Russian petroleum via the southern Adriatic pipeline to both its refinery in Százhalombatta and its refinery in Bratislava, Slovakia.
However, Janaf, the company that operates the pipeline, has still not given a clear and unambiguous answer as to whether it will allow Russian oil to pass through,
he said. Szabolcs Szabó added that MOL has a serious problem with the transport fees set by Janaf, which MOL considers to be extremely high, and that there are also uncertainties regarding the technical capacity of the pipeline.
“Our task remains clear: we will do everything we can to ensure that sufficient fuel is available in the region at affordable prices,” said Szabolcs Szabó.
Via MTI; Featured image: Public Domain
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