The new stations, which will be smaller than a traditional gasoline station, will be located in large localities, not on national roads or in cities, where the fierce battle is fought between large oil companies.
“We are launching a new retail concept and we plan to open new stations under a new brand. Next year, we will launch a pilot project of five stations selling LPG, as well as gasoline and diesel oil,” said Razvan Mitu, general manager of Bulrom Gas Impex.
The market the company is trying to edge in on, the fuel market, is worth EUR9-9.5 billion and includes 2,000 filling stations.
“Our clients have got used to a rural, not necessarily urban brand. We focus on the middle class, on low-income people. The fuel will be acquired from local refineries,” said Mitu.
At this moment, the company’s network is located in southern Romania and it includes around 80 LPG stations.
Beside the distribution network, Bulrom Gas also has three warehouses and three stations generating the LPG mix, as well as its own fleet of road tankers. Mitu puts the company’s assets at some EUR30-35 million.
“The car LPG market revolves around 400,000-450,000 tons and one ton costs around $800-900. In 2008-2009, the field underwent significant declines, of around 8%, amid two factors. There was the crisis fallout on the one hand, and the effect of the clunkers scheme that led to the replacement of many old LPG-based Dacia cars. In 2011, though, the market started regaining health as many people realized the savings that can be achieved,” explained Dan Coflea, commercial manager at Bulrom Gas.
Around 500,000 cars in Romania use LPG.
“I believe the market will keep up a pace of around 3-5%,” said Dan Coflea.
According to Finance Ministry data, the company reached revenue worth EUR83.5 million and net profit of EUR4.1 million in 2013.
“In 2014, we expect to reach EUR93 million in revenue and for next year we’ve budgeted EUR97 million,” said Razvan Mitu.
(English version by Catalina Apostoiu)