Bulgarian Government Increases Accessible Jet Fuel Stocks from State Reserve

Energy | August 3, 2011, Wednesday // 15:01|  views

Bulgarian Transport Minister Ivaylo Moskovski has said that the fuel debt of state-owned rail operator BDZ will be settled within days. Photo by BGNES

The Bulgarian government green-lighted Wednesday the unblocking of additional volumes of aviation fuel from the State Reserve to last for 10 days.

The supplementary quantities of kerosene will be accessed only in the case of disruptions in fuel deliveries to airline companies.

Last week, the government released 1800 tons of kerosene from the State Reserve, which were scheduled to last for seven days.

Transport minister Ivaylo Moskovski confirmed Wednesday that fuels from the State Reserve remained untapped at that stage.

Despite that, the accessible 7-day fuel stocks were increased to a 10-day value.

The step was prompted by the unexpected closure of the Lukoil Neftochim refinery, allegedly the sole producer of Jet A-1 aviation fuel, over its failure to install measuring devices ensuring tax transparency.

Moskovski also informed that he had discussed with Finance Minister Simeon Djankov the settlement of the debts of Bulgarian State Railways BDZ to Lukoil Bulgaria, which was supposed to happen within days, in order to avoid diesel supply irregularities in the future.

Last week, Lukoil Bulgaria halted diesel shipments to the state-owned rail operator due to debts.

On Monday, supplies were restored , following talks between the managing bodies of the two firms, with BDZ pledging to pay back its dues as soon as possible.

The payment was said to be contingent on the provision of bridge financing in the form of a state-guaranteed loan of BGN 140 M from the Bulgarian Development Bank.

The loan was approved several months ago, pending a decision of the Finance Ministry for the disbursement of the funds.


Tags: Lukoil Neftochim, Lukoil, aviation fuel, jet fuel, state railways, BDZ, kerosene, Ivaylo Moskovski, refinery

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