Rompetrol Georgia Register a 70% Growth of Sales

Rompetrol Georgia Register a 70% Growth of Sales

The FINANCIAL -- Gasoline prices have risen a further 5 tetri in Georgia in one week’s duration. The first increase of petrol prices took place on November 12, 2007. In total the prices have risen by 10 tetri over the past two weeks. This process is causing discontent among customers.


All leading petrol importers: Lukoil, Wissol Petroleum Georgia and Rompetrol Georgia LTD have increased prices yet again. The FINANCIAL interviewed Valentin Iani, PR Manager of Rompetrol Georgia LTD on the subject.


According to Valentin Iani, the tendency registered by the oil barrel on the international market is what is responsible for this situation.


“As everyone knows the oil barrel now is not very far from the historical and psychological barrier of USD 100. Unfortunately, according to the predictions of analysts the price of oil will continue to rise. As a consequence the price of oil products will increase as well,” Iani declared to The FINANCIAL.
“Rompetrol Georgia like other companies operating on the Georgian market had to raise its prices. However this is not only happening in Georgia but everywhere,” Iani added.


According to Rompetrol Georgia (RPG), the company started operating on the Georgian market in December 2005. Before this Rompetrol was present in Georgia through its products, gasoline and diesel, which were imported by several Georgian companies. These products are produced in Romania, in the refinery “Petromidia,” located in Constanta, on the Black Sea Coast. “Petromidia” is the biggest and most modern refinery in the Black Sea region and a top performer in Central and Eastern Europe. The production facilities of “Petromidia” are of the last generation and all the products are of the highest quality, corresponding to European Union standards.


“The situation looks much better now than it did two years ago when the company first started operating in Georgia. That is why Rompetrol Georgia’s management decided to actively expand activities in Georgia. Today the company has its competitors, they are: Wissol, Lukoil, Socar and Eko,” IANI claims.


According to Rompetrol Georgia (RPG), the Georgian market is not yet overloaded by oil products. Still there is enough space on the market and the perspectives are positive.


“Maybe there is a large quantity of oil products on the market, but the quality of a significant part of these products is very low. So you will see that the low quality oil products sold on the Georgian market will gradually be replaced by high quality ones. This tendency will be stimulated, on the one hand, by increasing competition between the main players on the Georgian market. Although not based on any concrete information, I predict that other major players in the oil products business are to arrive in Georgia in the near future,” Iani declares.


According to Valentin Iani, Rompetrol is going to compete on the Georgian market with their high quality and reasonably priced products and services.


“Good does not equate to low prices. Rompetrol prices will reflect the high quality of the products and at the same time the company will do its best to make the prices as accessible for customers as possible. When a driver is using low quality, low costing products, this does not automatically mean that he is saving money,” Iani said.


“On the contrary, in the long term he will waste money, because he will damage his car using low quality fuel and will have to pay money to repair it. It is not necessary to mention the damage that low quality fuels are provoking in the environment and the effect this has on the health of us all,” Iani added.


According to Rompetrol Georgia (RPG), the company did Georgian market segmentation and are going to try to satisfy different types of clients. However the company is going to be focused on the clients that appreciate quality first of all.


This year Rompetrol Georgia (RPG) registered a 70% growth of sales in comparison with 2006.At this moment the company possesses 10% of the Georgian market share.


“By the end of 2008 the Rompetrol Georgia (RPG) market share will be significantly increased. The net of gas stations will be expanding seriously both in Tbilisi and in the regions. At the moment Rompetrol Georgia has 26 stations, 12 in Tbilisi and 14 in the regions. At the end of 2008 the company will have more than 40 gas stations operating. At the same time Rompetrol Georgia (RPG) is going to invest in the modernization of the stations. The company will diversify and increase the quality of the services provided to its clients,” Iani declared.