The Reserves Administration will buy diesel stocks for a billion crowns, which will be supplied by Orlen Unipetrol

The Reserves Administration will buy diesel stocks for a billion crowns, which will be supplied by Orlen Unipetrol

Reserves management will buy a billion crowns of diesel stocks, Orlen Unipetrol will supply them

Illustrative photo – Logo of the State Material Reserves Administration (SSHR) on a picture taken on January 30, 2020 in Štítín in the Opava region.

Prague – The State Material Reserves Administration (SSHR) will replenish diesel stocks in state reserves by 50,000 cubic meters. The company Orlen Unipetrol, which succeeded in the public tender, will provide the delivery for approximately one billion crowns. The purchase will boost emergency diesel stocks by approximately 2.5 days of consumption in the Czech Republic for a total of 91 days of emergency stocks. The chairman of the administration, Pavel Švagr, told ČTK about this. The administration is currently also organizing a tender to replenish oil reserves.

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“In the competition for the supply of 50,000 cubic meters of diesel for one billion, we received a total of four offers. The best price offer was submitted by the company Orlen Unipetrol. If no objections are filed within the legal period, we are ready to immediately sign the purchase contract,” he said Brother-in-law.

According to him, the purchase is supposed to strengthen emergency stocks by roughly 2.5 days of diesel consumption in the Czech Republic. “After the delivery, we will reach roughly the level of 91 days of emergency stocks, so we will once again comply with the European Commission's regulations and our legislation,” added Švagr. another billion crowns. While he already has a supplier for diesel, he is looking for one for the sixth time in the case of oil. The previous five attempts ended without success. In the current tender, the administration received applications for participation and the qualifications of the companies were assessed.

Now the price offers will follow, Švagr said, adding that he could not comment on the course of the tender in more detail with regard to the supplier selection process. “I hope that in this round it will be possible to choose a winner. This would mean a further increase in emergency stocks by about 3.5 days,” he added.

The government approved the purchase of oil for SSHR warehouses last June due to a drop in oil stocks below the legal minimum, which is set at 90 days of normal consumption. Currently, according to management calculations, there are 88 days of inventory. The Czech Republic therefore does not comply with the EU directive, so the state must, according to the administration, replenish the stocks.