Ukrnafta switches to crude oil refining on tolling basis at Kremenchuk oil refinery

13:22, 12.10.2016 1 min read

Public joint-stock company Ukrnafta has switched to crude oil refining on a tolling basis for the entire volume of oil produced by the company at Kremenchuk oil refinery, Ukrnafta Head Mark Rollins said in Nadvirna, Ivano-Frankivsk region on Tuesday.

"Since May, we have been buying our own crude oil at auctions via an intermediary. We would like to do this directly, but this is banned in Ukrainian law. The intermediary helps us. We pay only several hryvnias per barrel to it. Then we refine own crude oil under a tolling agreement at Kremenchuk oil refinery," he said.

He added that fuel is sold in own Ukrnafta's filling station chain.

"Now we are controlling the money flow from our filling stations. We are controlling the margins and we can carry out own price policy," he said.

Rollins said that the cost of crude refining at Kremenchuk oil refinery is calculated using a formula.