Romania experienced a significant rise in autogas consumption last year, attributed to its lower cost compared to gasoline and diesel. The increase in demand led to a substantial boost in LPG imports, growing by over a quarter from the previous year.
Key Points:
- Autogas Consumption Increase:
- Autogas sales rose by 10,000-30,000 tonnes year-on-year, reaching between 270,000-300,000 tonnes.
- The price ratio of autogas to gasoline fell to below 50% from the previous 60-65% due to rising global gasoline and diesel prices.
- Autogas prices were around 3.27-3.35 lei/litre compared to gasoline at 7.12-7.15 lei/litre, making autogas 47% of the gasoline price.
- Impact of Crevedia Fire Incident:
- The fire at the Flagas refuelling station led to increased inspections and closures of autogas stations.
- Approximately 300 of Romania’s 1,000+ autogas refuelling sites were closed post-incident, leading to a drop in sales from September to December.
- LPG Imports and Exports:
- LPG imports increased to about 353,000 tonnes from 278,000 tonnes in 2022.
- Imports were delivered to Romanian ports of Midia, Mangalia, and Galati, with rail shipments from Russia halting due to the Ukraine conflict.
- Domestic LPG output cuts and increased overland exports supported the rise in imports.
- Exports rose by 5,000-10,000 tonnes to 330,000-340,000 tonnes, with significant increases in shipments to Ukraine.
- Sources of LPG Imports:
- Imports from Egypt doubled to 104,200 tonnes, primarily supplied by Naftomar and Evicor.
- Imports from Turkey increased by 51,300 tonnes to 69,600 tonnes, mainly delivered by Aygaz and Milangaz.
- Kazakh LPG arrivals via Georgia’s Batumi port increased by 14,800 tonnes to 27,600 tonnes.
- Additional LPG came from Algeria and the US.
- Future Projections:
- Autogas demand is expected to continue growing in 2024, with sales projected to reach 280,000-320,000 tonnes.
- Despite a rise in autogas excise duty from January 1, the higher duties on gasoline and diesel will keep autogas prices competitive.
- Domestic LPG output is expected to increase as issues at the Rompetrol refinery are resolved, stabilizing exports.
Overall, the lower cost of autogas relative to other fuels is driving increased consumption in Romania, contributing to higher LPG imports and a dynamic market influenced by both domestic incidents and international supply changes.
