Romanian Petrom Pins Fuel Price Hikes Only On Tax, US Dollar, Intl Oil Prices

Petrom's announcement came after the Romanian tax authority ANAF said in a report that fuel pump prices were unjustifiably increased throughout 2010. ANAF also noted that, despite the large price increases, the local oil companies reported losses.

To this, Petrom replied saying "all out financial indicators were calculated based on international and Romanian standards, and are audited by top international companies."

Fuel resellers cannot blame pump price hikes on the local taxation, Prime Minister Emil Boc said Wednesday, adding he called for additional inspections by the tax and competition authorities targeting the oil companies.

According to Petrom, taxes represent some half of the price for fuel, but even so, Petrom has some of the lowest fuel prices in Romania, and Romania has some of the lowest fuel prices in Europe.

The company added that, over the past six years, it has been one of the largest taxpayers, contributing some EUR9 billion to the state budget.

"In 2009 alone Petrom contributed 12% of the state budget. (…) Petrom is the largest investor in energy, with over EUR6 billion invested so far," the company notes.

Romanian oil company Rompetrol Wednesday said the authorities' claims of unjustified gas price hikes are based on an "unclear" report, which disregards various elements factored into the pricing algorithm.

Rompetrol said the report contains a series of vague elements, "which fail to reflect the real situation. For example, the leu-to-dollar exchange rate shifts are relevant, since raw material is imported and paid in dollars."

Romania's main fuel distributors are OMV Petrom (SNP.RO), Rompetrol, Lukoil, MOL and OMV.

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