Traycho Traykov: Lukoil's Logistics Costs Jumped 10-Fold, Fuel Prices Rising

The logistics costs of the Lukoil refinery have increased by a factor of 10 compared to pre-crisis levels. This was stated by the caretaker Minister of Energy, Traycho Traykov, to journalists on the occasion of the meeting of the crisis headquarters, which monitors and controls fuel and essential goods prices against the backdrop of tensions in the Middle East.

Traykov pointed out that this information was received from customs representatives and the management of the refinery. This has already been reflected in fuel prices, the caretaker minister clarified and added that this explains the prices, which are significantly higher compared to before the crisis. 

According to him, the traded volumes of fuels have not decreased and against the background of higher prices, this provides a buffer for maintaining the financial sustainability of everyone in the chain.

According to Traykov, the refinery's supplies are guaranteed until the end of May and even somewhat through June, which is also a function of the working capital available to the company. 

He also commented on the closure of the TPP "AES Maritsa East 1" in May because the power plant's contract with the National Electric Company expires. According to him, this was clear even before the caretaker government took office and most likely will not happen during its term. This has been known for a whole year, and some talks have been held about options, but we did not find any. From the point of view of production capacity, TPP "Maritsa East 2" can take over the capacity that stops working, he stressed. 

Traycho Traykov commented that the accents in the negotiations with the Turkish side on negotiations on the contract with "Botash" should be for quantities, capacity prices, possible reaction to changing market conditions.

According to him, the use of this contract is currently too expensive, and under equal other conditions, it would not be preferred to be used. I believe that the philosophy of this contract makes it possible, by calibrating the parameters, to be of great use, he said.