“NIS to lose monopoly status”
Serbian Oil monopoly (NIS) will likely lose privileges prior to privatization expert says. State subsidy to NIS cancelled.
Saturday, 07.04.2007.
15:18
“NIS to lose monopoly status”
In his opinion, the quality of NIS oil products falls short of world standards, with oil refineries still outdated despite immense investments in their modernization.“Serbia has provided direct state subsidies to NIS in a total amount of EUR 20mn over the last two years via the raw oil fee payments waved for NIS,” Radosavljević said.
He went on to explain that the inefficiency of NIS oil production was also substantiated by the fact that “NIS’s profit in 2004 and 2005 amounted to EUR 80 – 90mn, even though the company extracted raw oil worth EUR 400mn.”
Radosavljević suggested that the liberalization of imported oil products along with the privatization of NIS could be a possible solution to the problem.
However, he warned that an abrupt creation of oil market competition could also jeopardize NIS business activities.
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