Swedish Preem ponders pricey participation in privatization of Naftobazy
Swedish fuel concern Preem is considering taking part in privatization of
50-60% of Naftobazy, a liquid fuels storing company, which would enable it
to increase the retail and wholesale prices of its products. "Our
participation depends on the government' s decision. When PKN Orlen refinery
and British Petroleum enter the talks, we will consider joining the
negotiations," said Adam Ringer, a member of Preem Polska' s supervisory
board. In the next 3-4 years the company is going to increase its imports to
1 million tons of liquid fuels; the current level is estimated to be around
65-70% lower. Preem also anticipates expanding its gas station network in
Poland from 100 outlets to 400 to 500. "The cost of launching one gas
station is around $10,0000," added Ringer. "Preem closed last year with tens
of millions of zlotys in losses, mainly due to the uncompetitiveness of the
Polish market." (Puls Biznesu, p.4) J.K.
