“Independent petrol stations have repeatedly complained that oil companies sell less high-octane gasoline than the market requires.”
Oh dear…
“Another Kommersant source sees the problems of extending the terms of shipment of goods in the physical shortage of fuel at some oil refineries. Oil refineries sell goods on the exchange from more distant production in order to prevent a sharp reduction in daily sales volumes.”
Remember how I keep warning you about Russia “wagging the dog” and messing with data?
Well that’s a good example. This way their daily sales look good!
“In addition, additional problems arise during shipment — the inability of Russian Railways to promptly accept tanks in some limited directions, as well as a shortage of tanks at some oil refineries.”
In addition, I’ve told you before that every time Russia either implements a gasoline ban OR removes one, it causes difficulties for Russian Railways.
By the time they finally get close to untangling everything, Russia changes it and the process starts over.
In Russia there is a limit to how much the gas station can sell the fuel for. This then allows Russia to manipulate the Consumer Price Index and keep their “official” inflation numbers low.
Unfortunately, the big flaw is that the gas stations may go bankrupt.
See the trend?
This next part is what I’ve been chewing on. So be forewarned, I have questions here myself.
So…“Oil companies will need additional volume”To me mean that the refineries aren’t producing enough fuel to meet demand (especially not high octanes)
And..“a result, they will be forced to reduce sales on the exchange or buy goods from each other”So, these oil companies have their own fuel stations (I think). *sigh* brief explanation
Your fuel is supplied from the nearest refinery regardless of who owns the fuel station and who own the refinery.
For this reason, (in the US at least) you will often find that places where 2 or more refineries distribution areas overlap have some of the cheapest prices.
Sometimes there’s a running joke that fuel next to a refinery it’s more expensive because it’s “fresher” but it’s really just lack of competition and they need to compensate for the cheaper prices in competitive markets.
So back to our quote:
“As a result, they will be forced to reduce sales on the exchange or buy goods from each other”
Makes me wonder if they’re considering making secret deals between oil companies to make sure THEIR fuel stations are supplied.
This would then leave the independent fuel stations (those not owned by refiners) on their own
“"Tanks have been submitted, GU-12 permits have been received, but additional approvals from Russian Railways in accordance with the dynamic infrastructure loading model and the daily client loading plan cannot be obtained, which is why downtime occurs," the expert notes.”
I think the “dynamic infrastructure loading model” maybe operating in manual mode.
Based on reports, it appears that Russian Railways is struggling to predict when or if a locomotive will be available. Add in derailments, equipment failure, partisan attacks, short notice shifts in priority from the government, Ukraine invading Russia, and so on….
They’re flying by the seat of their pants. Sort of like they’re operating in triage mode (or perhaps whoever is able to payoff the right person gets shipping)
It’s delicious, and it’s getting worse.
“In addition, according to him, the shipment times were affected by the consequences of attacks on Russian refineries, which were unable to fulfill all their obligations as a result of repairs.”
NOTE: ITS NOT JUST THE ATTACKS
Remember that LUKOIL refinery we discussed lost one of their FCC units as result of equipment failure and SANCTIONS kept them down.
Loss of skilled personnel and sanctions are also hurting refining. Western Engineering services were even cut off via sanctions.In summaryIT WILL GET WORSE
~ The End ~