Czech Republic downstream oil long-term outlook 2016
The Czech Republic is largely deficit in refined oil products, particularly transport fuels. Overall oil demand is expected to decline over the forecast period, as growing demand for some products such as diesel/gasoil falls short of the structural decline in others, notably gasoline. Unipetrol, now majority owned by PKN ORLEN, gained full control of the Czech Refining Company (CRC) in 2014, following its acquisition of the stakes held by Shell and Eni. We anticipate more consolidation in the market following MOL's purchase of LUKOIL's retail outlets and Eni's downstream businesses in Czech Republic, Slovakia and Romania. In the beginning of 2016 Unipetrol announced the acquisitions of 68 OMV stations. Shell's commitment to the Czech fuels market remains uncertain following the sale of its stake in CRC.