Serbia's oil derivative supply stable despite Danube water levels, minister says

Serbia's supply of oil derivatives remains stable, unaffected by the Danube River's water levels, according to Dubravka Đedović Handanović, the Minister of Mining and Energy. This assurance comes after discussions with Kiril Tyurdenyev, the General Director of Naftna industrija Srbije (NIS), regarding the company's operations and production plans for August.

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The government's goal is for all pumps to be regularly supplied, large and small, NIS customers, as well as other oil companies operating in Serbia, so that everyone has enough fuel as before, that NIS produces as much as possible and satisfies the demand, which is record-breaking in August and we estimate it at around 200,000 tons of diesel, which is consumed the most.

The government aims to ensure all fuel stations, both large and small, are consistently supplied. NIS is expected to meet a record demand in August, estimated at around 200,000 tons of diesel, the most consumed fuel. The Pančevo refinery and NIS's operational reserves are compensating for reduced import volumes, which are hampered by low water levels on the Danube, complicating logistics and increasing costs. The situation is further strained by high quotations on the Mediterranean market.

"Import is reduced to a minimum in July, and we expect a similar situation in August. These missing import quantities are being compensated for by the refinery in Pančevo and NIS with its operational reserves," stated Đedović Handanović. The ministry is closely monitoring the Danube's water levels and utilizing railway transport to facilitate the delivery of oil derivatives wherever possible. The current supply stability is expected to hold as long as NIS's license from the Office of Foreign Assets Control (OFAC) is valid, which is until August 28.

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Import is reduced to a minimum in July, and we expect a similar situation in August. These missing import quantities are being compensated for by the refinery in Pančevo and NIS with its operational reserves.

NIS also reported having enough kerosene reserves for a month and a half of consumption, with regular production continuing. The supply of gasoline is also stable. NIS anticipates record sales of diesel and gasoline in August, potentially the highest in the last five years. Kiril Tyurdenyev emphasized the company's commitment to market stability, noting that their refinery processing is averaging 11,000 tons per day, reaching 330,000 tons in August – the maximum achievable with the current one-month license. NIS is planning to increase daily production to 13,000 tons to guarantee sufficient derivative quantities.

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Our processing is on average 11,000 tons per day, or 330,000 tons in August, which is the maximum we can achieve with a license valid for only one month. We are taking steps to increase production to 13,000 tons per day in the next period, in order to ensure sufficient quantities of derivatives and continue to contribute to supply stability.