‘Oil reserves concession’ leads to increase in gas price

Prime Minister Emil Boc declared, referring to the rising price of fuel sold by Petrom, that the Romanian state can only intervene through verifications in establishing the legality of such price increases.

The Prime Minister explained the current situation by the fact that the country’s oil reserves were sold in 2004 through a contract that’s unfavourable to the Romanian state.

‘This is what happens if you don’t have any control on the country’s oil reserves and you sign a contract with Petrom, just as someone else did in 2004; and I don’t intend to make any political accusations. This is what happens when you sell your country’s oil reserves, this is what happens when you determine by a contract signed until 2004 that you cannot interfere with fees.’

‘This is what happens when you sign contracts unfavourable to the state, and afterwards use only collateral damage control, through NAFA or the Competition Council to verify if this things have indeed real support or not. Obviously, I will carry on the analysis and research together with the Competition Council and NAFA’, Emil Boc declared.

OMV PETROM, controlled by the Austrian Group OMV, increased on Tuesday, for the second time in one week, the price of gas and diesel, after last year fuel price increases exceeded 20 percent.

In 2004, during the mandate of the PSD, led by Adrian Năstase, the Austrian Group OMV took an equity stake of 51.01 percent of the Petrom capital, in a deal worth 1.5 billion euros.

OMV bought 33.34 percent stakes from the state for 669 million euros and increased its social capital with 830.6 million euros to reach 51 percent participation.

Through the privatisation contract, the company benefits of reduced fees paid to the state budget.

Translated by: Manuela Stancu
MA Student, MTTLC, Bucharest University