“Wissol is the leader of the market”

“Wissol is the leader of the market”

The FINANCIAL -- According to the Ministry of Finance of Georgia (MOF), state budget incomes from the local oil sector was increased by 13% and reached GEL 252 million within the last 8 months, that mainly owes 55% of oil and 33%-diesel taxation realisation.


“Wissol Petroleum Georgia is the leader of the market with 137 million litres of oil sales, 47% increase since 2006. The second position is occupied by Lukoil Georgia with 90 million litres of oil sales, being 35% behind the market leader. Lukoil current sales statistics showed 10% increase compared to the last year’s datum”, study says.


The increased indicator of oil consumption in Georgia is conditioned by the growth automobile import to the country. During the last two years vehicles of USD 0.5 billion were brought to the country.


Wissol Petroleum Georgia sales reached USD 77 million during the first 7 months of 2007, company reports. In 2006 Wissol increased sales by 60% - to USD 100 million. Over 3 500 corporate clients get Wissol Petroleum services as well as numerous individual clients.


“The success of Wissol was conditioned by adding 15 filling stations and introducing new service products”, company representatives said. As of October 1, Wissol Petroleum Georgia has been offering its customers the Pirveli Card - a cumulative discount card, thanks to which people can enjoy up to a 5% discount at any of the Wissol service stations Georgian-wide depending on the amount of oil consumed.


“According to the latest datum of October 2007, the emission number of Pirveli Cards by Wissol Petroleum Georgia has struck record high statistics - 18 300 copies. Discounts offered by Wissol’s new product have exceeded GEL 92 000. As for fuel realization, overall 1 990 883 litres of GEL 2 912 733 35 value, have been sold through of Pirveli Cards. It is our strategic goal not only to satisfy our costumers but to exceed their expectations by offering stable  quality product, hassle free services and permanent surprise campaigns, ” Nino Dgvepadze, Wissol Petroleum Georgia’s Marketing Director, told The FINANCIAL.


According to Business Courier, a business news program on Rustavi2, there’s a less demand on TBC-Lukoil cards that were released 10 months ago as the company has sold only 7000 cards up to now. TBC-Lukoil card envisions discounts at around 15 filling stations in Georgia. The card owners are given a chance to win Peugeot 307 in a New Year’s lottery.


It was reported that in April 2007, 58.7% of the enquired appeared to be Wissol filling station customers, followed by 23.8 - Lukoil Georgia, 7.9 - Eko Georgia, and 2.6 - Magnat.


“Our mainstream mission was to become a premium brand in Georgia and by signing a contract on importing Italian high quality API oil, Wissol has reached this very goal,” noted Samson Pkhakadze, the chairman of Wissol’s Board of Directors.


“Wissol provides the import of its premium products from Italy, particularly from the Falconara Marittima refinery. The company’s supplied with the rest of products from Eastern Europe.
For the first time in Georgia Italian fuel from API is available at Wissol branded service stations nation-wide. This fact reflects the strategies fielded by Wissol in recent years to promote safe, environmentally friendly fuel and to respond to such high-priority challenges as better fuel economy, lower emissions and greater safety. Wissol is the sole oil company in Georgia to hold the ISO Quality management Certificate”, company says.


Wissol claims that the new refinery constructed by Azerbaijan State Oil Company SOCAR won’t have a direct influence on Wissol’s price policy.


“Wissol is not a SOCAR client, hence their activities won’t effect Wissol’s price policy. As for the rest of the petroleum companies who are direct SOCAR clients, naturally they’re expected to face particular problems in regards to this. It all depends on SOCAR’s strategy with its wholesale partners,” Nino Dgvepadze, Wissol Petroleum Georgia, told The FINANCIAL.


Wissol holds over 100 licenses for operating filling stations in Georgia, out of which today the company exploits 56. By 2008 the indicator is expected to reach 67.


“I see no concern about SOCAR constructing a new station as the products offered by the latter are low quality Azeri-made diesel and oil. As for Lukoil Georgia, we’re supplied from Bulgaria,” claimed Levan Gogichadze, Lukoil Georgia.


By the end of August Lukoil had sold 11 filling stations to SOCAR Energy Georgia. Though according to Lukoil officials, the decision was made due to technical problems at the filling stations. Lukoil operates a franchise business with its partner companies and there’s a risk of violating the accepted standards. Today Lukoil operates 56 filling stations throughout the country.


State Oil Company of Azerbaijan Republic (SOCAR) is one of the largest companies in the world. It was incorporated on the basis of the oil & gas production and oil refinery enterprises of the Republic in 1992. With the active support and participation of SOCAR, SOCAR Energy Georgia LTD was founded, which itself founded SOCAR Georgia Petroleum (SGP) LTD with a 100% share. SGP entered the Georgian oil products market in September 2006.