LUKOIL Loses RUR 8.5bn Due to Fuel Price Restrictions

UrBC, Moscow, November 13, 2018. LUKOIL estimated it recent losses due to fuel price restrictions in the last four months (the restrictions were first imposed in late May) at RUR 8.5bn, Kommersant refers to the company’s head Vagit Alekperov as stating.

According to Alekperov, LUKOIL signed an agreement to freeze the small-scale wholesale prices that came into effect retroactively on November 1. So far, while the oil prices remain high and the ruble relatively weak, the company hasn’t been paying too dearly for having to subsidize domestic fuel prices: the losses get contained within several percentage points of the oil giant’s net profit.

‘We are naturally losing money on the retail market, as do all other fuel manufacturers. Our losses, in terms of opportunity cost, came to around RUR 8.5bn in four months,’ Alekperov is quoted as telling reporters during the ADIPEC Conference in Abu Dhabi.

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