At the end of summer, the prices of oil and oil derivatives rise again. Natural gas prices in Europe have risen by around 120 percent since the beginning of the year, and supplies are being replenished. Countries in the region and beyond are intervening, while our politicians are mainly concerned with upcoming elections and new mandates.
Due to the American war with Iran, the Strait of Hormuz is still closed, the geostrategic conditions are unstable, and in our country there is no effective control mechanism and response to prevent possible energy shortages and chain price increases. How to achieve stability in the energy market?
Oil again above 90 dollars
The price of oil is on the rise again and is now more than 92 dollars per barrel. Although prices at gas stations should not automatically rise until the reserves purchased at the purchase price are used up, there is nothing stopping sellers from raising and dictating prices. At least not in Bosnia and Herzegovina.
While countries in the region reduce excise taxes and limit margins on petroleum products, everything is left to the good will of private companies.
“We will also have to follow this policy of adjusting to market prices. This is mostly left to the private sector, which has so far shown great vitality and resourcefulness and managed to provide sufficient quantities of oil and oil derivatives,” said energy expert Edhem Bičakčić.
Diesel the most expensive, fear of shortage
When it comes to oil derivatives, diesel is still the most expensive in our country, which is 3.38 KM per liter on average. This means that the fuel tank is 30 KM more expensive than last month.
Any instability on the market that heralds a price increase brings with it panic buying among citizens, which in the extreme case can lead to shortages. As early as autumn, Europe could face the biggest oil shortage in the last decade, because Russian oil is no longer imported, and the situation in the Middle East is getting more complicated.
Nevertheless, the Oil Terminals of the Federation of Bosnia and Herzegovina assure that there is no room for panic.
“As far as the shortage of oil for the market of Bosnia and Herzegovina is concerned, I can say, based on a free estimate, that I do not believe that there will be a shortage because we are not supplied from the Mediterranean area. So far, deliveries from those refineries that we buy, that is, from which we supply the market of Bosnia and Herzegovina, have been stable,” says Damir Kreso, president of the Oil Terminals Management Board of the Federation of Bosnia and Herzegovina.
There are reserves, but they are not enough
The supplies that the Federation of Bosnia and Herzegovina has are sufficient for a few days or weeks, depending on the amount and speed of consumption of those supplies in the event of a supply disruption.
“The terminals of the Federation have certain quantities of both diesel and gasoline for the needs of the most urgent services. These are hospitals, emergency services, civil protection, police and so on,” explained Kreso.
RS without oil reserves
On the other hand, RS has no stock at all. This entity is heavily indebted, so perhaps that is the reason why the political elite led by the SNSD is trying to keep every penny. With the justification of jurisdiction, they refuse to adopt the limitation of excise duties and margins on fuel.
There are a billion reasons for that. More specifically, one billion and 126 million KM, which was collected by the Administration for Indirect Taxation of Bosnia and Herzegovina from the beginning of the year on oil imports.
“Absolute damage, I think, can be suffered when there is insufficient work of institutions at the level of Bosnia and Herzegovina when it comes to oil reserves, let’s call them that. As for the Federation of Bosnia and Herzegovina, the situation is stable at the moment, however, we do not have enough built terminals where we can store our oil,” said Vedran Lakić (SDP), Minister of Energy, Mining and Industry of the Federation of Bosnia and Herzegovina.
New terminals needed
For the long-term security of the Federation of Bosnia and Herzegovina, it is necessary to build four more terminals and provide much larger reserves than they currently have, explains Lakić.
However, the Federation of Bosnia and Herzegovina alone cannot do much. An agreement at the state level is needed. Just as excise tax money is collected throughout its territory, in the same way it is necessary to limit it in moments of unstable market, such as the current one, and to show the citizens that their interests, as well as the interests of the entire state, are above those of daily politics, Federalna writes.
