Head of NJSC Naftogaz of Ukraine Yuriy Vitrenko said in a comment to the Interfax-Ukraine news agency that the company claims the role of operator of the national network of filling stations.
"Naftogaz should become the operator of the national network so that the issue of high prices is resolved. This task was set by the president. In addition, we can be an effective tool for the state to interact with leading global resource companies," Vitrenko noted.
He explained that under imperfect competition in the market, the presence of a state operator allows it to act as a price leader and abandon state regulation of prices.
"When a state player has a significant market share — 15-20-30%, that is, not 100%, but not 1% either — there is more confidence that consumers will be able to buy at a fair competitive price... If the network occupies 30% of the market, this already gives people a real alternative. In turn, this will force private operators not to inflate prices," Vitrenko emphasized.
At the same time, the head of the NJSC board clarified that the company has not yet gained control over the Glusco filling station network. "There are certain nuances, but I hope that the state will show flexibility, and we will gain control over the filling stations," he added.
