These days in Romania there is a big discussion upon the oil price increase
-- there was a 10% hike and they say there will be another one. One of my
friends who is CFO at a multinational operating in Romania told me the other
day that he is budgeting the oil price at 5.5 ron for 2006. That's about 1.5
euro per liter. Apparently the costs of Petrom, the main initiator of these
price increases, have not increased as much, as such there is an official
investigation going for seeing if the increase is justified.
In othe news OMV, Petrom's shareholder, after consolidating its position in
Central Eastern Europe by acquiring Petrom, now is
looking for a Turkey refining company.
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Note that these extreme oil price hikes appear to be world-wide. Here in the UK the prices has gone up about 20% in the last two weeks. The highest price here is now around 1.6 euro per litre. Hurricane Katrina is the latest excuse (the Americans are desperate for oil, which is pushing up the price for everyone else).
That's right, I guess it's everywhere -- see Norway for another example. In Romania however the word is that it's just a pretext for aligning the prices to the EU's ones as a liter of petrol was about 80 eurocents.