The Government of the Federation of Bosnia and Herzegovina, in cooperation with operators and distributors, is working on establishing strategic fuel reserves modeled after the Austrian system, officials confirmed at a press conference.
Damir Kreso, Chairman of the Management Board of Terminali of the Federation of Bosnia and Herzegovina, the oil storage company, and Lidija Bradara, President of the Federation of Bosnia and Herzegovina, emphasized the importance of public-private partnerships that would enable the creation of reserves during periods of favorable global market prices, thereby ensuring long-term energy stability for both the entity and the state of Bosnia and Herzegovina.
Speaking about the crisis in the Middle East, Kreso stated that it has been overcome in Bosnia and Herzegovina and that there is no need for citizens to worry about fuel supply.
“The Government of the Federation of Bosnia and Herzegovina, together with the Association of Oil Companies, operators, and the railways, has fulfilled its tasks and goals to overcome this crisis, and today we have two types of reserves for citizens and general consumption. These reserves are fully stocked, and as for the reserves of the Federation of Bosnia and Herzegovina terminals, they are intended for emergency services, which is their primary purpose. Therefore, regarding the situation in the Middle East, there is truly no need for panic. Oil and petroleum products are being imported and delivered daily to gas stations, and I, as well as you, have not seen a single station closed due to a lack of fuel,” said Kreso.
He added that fuel prices are somewhat higher, noting that oil is a speculative commodity and subject to speculation on the stock exchange.
“I assure you that if the (Hormuz) Strait were to reopen tomorrow, oil prices would fall below the levels seen before the crisis. Until that happens, we must adapt to the current prices. As for the decision adopted yesterday by the Government of the Federation of Bosnia and Herzegovina, it represents strong support for establishing and maintaining reserves within the territory of the Federation of Bosnia and Herzegovina,” said Kreso.
He also referred to Austria’s approach in such situations, highlighting that the Austrian model is applicable to Bosnia and Herzegovina.
“The Government of Austria has its own companies, and the oil stored in tanks actually belongs to distributors and importers for Austria. This creates a kind of synergy that the Government of the Federation of Bosnia and Herzegovina is trying to achieve through the terminals together with oil distributors in Bosnia and Herzegovina, in order to jointly establish reserves that would serve citizens, emergency services, and all essential institutions in case of a complete supply disruption. Germany has a different model, where a state agency manages these reserves, while Hungary applies another approach. This is the model that the Government of the Federation of Bosnia and Herzegovina has recognized as very important, especially since there is no refinery in Bosnia and Herzegovina that produces petroleum derivatives. What we can do is build and fill our storage capacities,” said Kreso.
He once again stressed that panic does not lead to positive outcomes.
“No panic can make things better; it can only make them worse. You have seen that panic over shortages caused faster price increases. Without such reactions, prices might have risen more gradually over a longer period, without sudden spikes at certain gas stations. However, I also understand fuel distributors. When a station runs out of fuel, they either have to close—which would cause even more panic—or purchase new supplies at current market prices, which are higher. The panic we witnessed was temporary and should not happen again, as the supply system has never been interrupted,” said Kreso.
Lidija Bradara, President of the Federation of Bosnia and Herzegovina, expressed hope that the authorities will successfully develop all key infrastructures.
“It is very important in this process that the Railways of the Federation of Bosnia and Herzegovina function efficiently, as this would facilitate transport and reduce consumption. I believe that the current work of the oil terminals’ management, along with ongoing negotiations with Croatia and everything that is important for Bosnia and Herzegovina, is functioning well at this moment,” she said, adding:
“It is crucial that companies respond to this initiative—a form of public-private partnership supported by significant subsidies from the Government of the Federation of Bosnia and Herzegovina—so that we can utilize our terminals and create fuel reserves when global market prices are favorable. At the same time, it may not be too late to advise citizens not to panic or purchase unnecessary fuel reserves at certain moments,” said Bradara, eKapija writes.
