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Yakutia can start fuel production by 2022

  • Published in Economy
Today, Yakutia has to import over a million tons of fuel per year

The investor will finance the organization of fuel production in the region

Yakutia will begin its own production of fuel at least in 3-4 years. Today in the republic there is not a single enterprise producing fuel and lubricants, not a single filling station of large oil companies.

Over the past six months, the wholesale price of gasoline has increased by almost 10 rubles. And the price increase will continue, as oil on the world market becomes more expensive, gasoline excise duties have increased.

Meanwhile, to date, there is not a single gas station of major oil companies in the republic, such as Rosneft, Lukoil, Gazpromneft, with which the government of the country can make arrangement. In addition, in Yakutia there is not a single enterprise producing fuel and lubricants. Therefore, the republic has need to import more than a million tons of fuel from the Irkutsk region and other regions of the country. Due to high prices and poor-quality gasoline at gas stations in the republic there is a need to launch its own production of fuel.

At the same time, as the head of the republic Aisen Nikolaev noted, if before production with a volume of up to one million tons was considered profitable, today, according to experts, production up to 10 thousand tons of fuel can be profitable. The cost of building plants, designed for the production of 20-30 thousand tons of gasoline per year, is about 45-50 million dollars.

On November 11, Aisen Nikolaev said in the ‘Open Conversation with Il Darkhan’ on the Yakutsk TV that the investor would finance the organization of fuel production in the region. Yakutia will only provide the company with a land plot.

- If the investor starts working, and the project gets a good promotion, the plant, whether oil refining or gas processing, will work in three to four years. We have already begun this work. We hope that by 2022 we will produce our own fuel in the republic, which will allow us to regulate prices for gasoline and diesel fuel and create healthy competition in the market.