FBiH Government holds meeting with oil distributors: No need for panic, inspections will monitor price and goods increases

(Patria) - An urgent meeting of the Collegium of the FBiH Government and relevant federal ministers was held in the FBiH Government with all relevant actors in the oil and oil derivatives supply chain of FBiH, after which the Prime Minister of the Federation, Nermin Nikšić, addressed the media.

He stated that due to market disruptions, caused by the war, consumption increased from 1.7 million liters to 3.1 million liters.

"But despite this, thanks to the distribution chain, fuel has been secured, of course, considering that we cannot influence global fuel prices. Although, as our distributors have noticed, as long as people come from neighboring countries to refuel in BiH, it is a sign that fuel prices are more favorable here than there," said Nikšić.

He said that the blockade by transporters on March 23 was also discussed.

"That blockade could cause additional problems. Railways of FBiH can play a key role, as they can be the key to the market supply. The FBiH Government has fulfilled all its obligations to the Logistika BiH Consortium, but we cannot influence the European Union on the 90/180 rule. Distributors pointed out certain problems, the director of FUZIP was also present. We agreed that the inspection should show understanding. The government will support the initiative, whether it is 10 or 20 percent, for a temporary reduction of excise duties, so that the government can share the burden with the distributors. This will have to go to the Council of Ministers of BiH, but we will try to initiate and request it. We pointed out one problem, that as a consequence of oil prices, the prices of general goods increase. The engagement of inspections is important when it comes to preventing price increases. We have 60 items with limited prices, but we will also monitor other items," said Nikšić.

Izudin Ahmetalić, as a representative of distributors and owner of HIFA Oil group, said that all problems must be minimized for the citizens.

"The Federation of BiH has not been left without oil derivatives, even though we do not have a refinery, and even though we did not receive oil quantities from neighboring countries. Our misfortune is that the Rijeka refinery, which primarily supplies BiH, is currently undergoing overhaul. We have dispatched significant quantities of oil from reserves, and HIFA has been a stabilizer in this situation, but there is no need for panic," said Ahmetlić.

He emphasized that they will do everything to stabilize the situation, and that they have also taken over part of the supply for the RS entity.
"This is a serious experience, we went through the experience of corona, the war in Ukraine, now we have this, but we have secured certain quantities of oil in other countries as well. If necessary, that quantity would also be introduced into BiH," said Ahmetlić.

Ahmetlić pointed out that the formation of oil prices does not depend on domestic distributors and that no one knows what the price will be tomorrow.

"The railway is becoming a serious artery for the supply of FBiH. Oil is a volatile commodity and does not like these global events. If the Strait of Hormuz remains closed, we must accept that it will be difficult to control this situation in the world. New routes will open, new channels will open. Only irresponsible people can talk about prices. At this moment, I cannot talk about the future," added Ahmetlić.

Nikšić said that the government will intervene in cases where prices of other goods also start to rise.

"The government is key to determining additional measures to those that already exist".

Nikšić refused to say how large the reserves are in the Oil Terminals, but said they are "satisfactory quantities".

"When we have distributors who ensure the market, I see no need for us to release oil from commodity reserves," said Nikšić.