Untitled - Magyar Ásványolaj Szövetség

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Untitled - Magyar Ásványolaj Szövetség

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Memorandum on the activity of the Hungarian Petroleum Association in the year of 2008*

We have never been a thing like that. Both the product price and the crude oil price reached historical maximum

in summer that was followed by free fall. The high prices was caused by the increased demand for products

in 2008, too that was followed by crude oil. The course of euro and of forint to dollar showed extreme volatility

which reached the historical minimum in summer. In the course of the year an economic crisis became more

and more complete which most probably did not meet the deepest point by the end of December. In order to stop

the price increase OPEC enhanced the production to the historical peak, later in order on to stop the fall it carried

out the biggest production reduction of its history but none of the actions produced the wanted effect. As

a resulting of the world market changes the prices of fuels was experienced in Hungary a never observed fall of

between the maximums of July and minimums in the end of the year the difference was some 80 HUF/liter.

International outlook

As from the point of view of the oil industry and trade the price of oil had a central role this section is divided into

two parts to the oil price and other international events partly in connection with the price (source of pictures:

MOL).

Oil price

The market was very nervous. Even in 2007 the price of crude oil grew continuously but in December it was still

bellow 100 USD/bbl. In 2008 the price of Brent was formed as follows (in USD/bbl)

*This is translation of the “Beszámoló a Magyar Ásványolaj Szövetség 2008. évi tevékenységéről” written in Hungarian language.

In the case of any difference between the two versions the Hungarian one is authoritative.

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2008 started with a historic event; on January 2nd 100 USD/bbl was paid for WTI in New York. The Brent

reached 98 USD/bbl in London. (In New York a broker called Richie Ahrens bought for his own account, the

transaction was valid for the possible smallest quantity of 1,000 barrels at a price of hundred dollars. It was just

in order to get the doubtful honor. The contract was sold immediately with a loss of 600 dollars – in the meantime

the price fell bellow 100 dollars.)

The price of crude oil continuously grew in the first half of the year. Brent reached a historical maximum on July

4th with 144.2 USD/bbl thereafter started to decrease.

On August 19th it was announced that the production of the OPEC was 32.8 million barrel a day in July. In the

48 year old history of the organization it means the maximum.

On September 22nd the price of crude oil has increased in a never seen value, 25 USD/bbl. WTI jumped up to

130 dollars, but in the end of the day it was 121, in the morning of the next day about 105 USD/bbl.

On November 16th Iran invited OPEC to reduce the production by 1-1.5 million bbl/day in the Cairo meeting

in the end of the month in order to defend the prices. In the end of October the production was already reduced

by 1.5 million barrels. None of the action has changed the price trend.

On December 17th the OPEC announced to reduce the production by 2.2 million barrels a day the highest one

in his history. In spite of it the prices continued to fall. On December 19th it was 32.6 dollars (the lowest price

since 2004). The Brent reached the minimum of 33.6 USD/bbl on December 24th.

As to the fuels the prices of gasoline (red) and of diesel (green) were formed in the “world market” (FOB Rott)

as follows (data in USD/t).

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The price was the highest on June 11th with 1200.3 (gasoline) and 1347.3 (diesel) USD/t, the minimum for

gasoline was 273.1 that for diesel 424.5 USD/t on December 24th and the price of diesel exceeded that of

gasoline in the whole year. From the point of view of the European countries the course of dollar to euro had the

following shape in 2008. One euro equal to 1.597 dollars on July 15th and one euro was equal to 1.249 dollars

on October 27th.

Other international events

In the beginning of January a surprising declaration was done by Stavros Dimas, environment protection commissioner

of the EU. He admitted the Commission had not seen all the possible disadvantage of biofuel production

when the big aims were fixed. It is better not to reach the goals, he said, than to do it in a way from which

the poor people and the environment would suffer.

On January 14th the Royal Society made a report open, which invites the Union to give guaranty, that the biofuels

really reduce the CO2 emission. On January 22nd it was mode public the report of the Environment Committee

of the British parliament which states that the biofuels cause more loss than profit in the environment

and it was proposed to order moratorium on the increase of their shares. Earlier Jean Ziegler expert on feeding

in the UNO called “a crime against mankind” the stimulation of biofuel production.

On February 23rd, after the flight of Airbus 380 with “non-conventional kerosene” one of the four engines of

a B747 of Virgin Airlines was operated with a non-conventional fuel in a flight form London to Amsterdam.

(The company did not give the exact composition just mentioned that it contained palm oil derivative, as well.)

After the announcement of a huge oil filed in November the state owned Brazilian petroleum company, Petrobras

declared to have found an even bigger field in territorial waters of the country the can be the 3rd biggest

one in the world according to their estimation.

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On June 5th Luc Chatel the spokeman of the French government let it know that on the “request” of the government

TOTAL is expected to pay 150-200 million euros into the state budget for helping the fuel purchase

of the poorest families. The president of the company said in the parliament that they are ready to pay on condition

that the government does not make it compulsory.

On June 11th Mr László Kovács the tax commissioner of the EU announced that “the decrease of taxes are not

proper means for handling the high crude oil and fuel prices. As a solution he proposed the so-called Robin

Hood tax. It’s essence in that from the extra profit of oil companies the poorest layer of buyers are supported.

Decision can be brought in the meeting of the prime ministers and presidents of the Union in the next week.

On June 19th in the meeting of the prime ministers and state presidents of the Union Mr. Manuel Barroso president

of the European Commission declared the Brussels would not prevent the member states from introduction

of “Robin Hood” tax and from reducing the excise tax. Mr. Ferenc Gyurcsány who took part in the meeting

declared that the Hungarian government wants to reduce the expenses of the most indigent by 10-20 billion

forints (cca. 40-80 million euros) to which the security would be taxation of extra profit of energy companies.

He added, however, that it would be worthy to speak of it when we are thinking of reformation of tax system. In

the very end the prime ministers and the state presidents were not able to agree.

Between June 29th and July 3rd was held the 19th World Petroleum Congress in Madrid where our president

was elected to the senor vice president of the WPC and in which the secretary-general of our Association took

part with a poster lecture (“The Use of Biofuels in Central Europe”).

On July 8th two important events happened. On the one hand the Commission rejected the Hungarian request

for reducing the excise tax of “commercial” diesel (used by transporting companies). On the other hand the retorics

on biofuels was suddenly altered and now they emphasize that on the 10% biofuel share required for 2020

one has to mean renewable fuel, among other electricity and hydrogen.

On July 31st took in force the “Robin Hood tax” in Italy according to which the tax on profit (“extra profit”) of

the oil and gas companies is increased.

On October 1st the European Committee fined nine companies (among others ENI, ExxonMobil, Mol, Repsol

and Total) for 676 million euros due to cartel activity in the paraffin market. Shell had been in the cartel but was

not fined because this company informed the Committee on the existence of the cartel.

On November 13th the Czech newspaper “E 15” wrote that PKN Orlen is ready to buy the actives of the Czech

Shell if the British-Dutch consortium leaves the country. Shell owns 117 stations in the Czech Republic and

partly owns the refineries.

On November 19th the tax commissioner of the EU declared that the automobile industry can not expect for a

life-belt which was given to banks. In the previous day Angela Merkel German chancellor put into prospect, due

to the broken situation of the mother company General Motors, to give subsidy for Opel (but just in order to save

German work places). In America the car industry asked for state aid of 25 billion dollars but the two parties

were unable to agree upon it. Referring to this the association of the European car manufacturers (ACEA) wanted

to get an aid of 40 billion euros.

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In connection with the economic crisis it was announced in Washington on November 26th that after the previous

life belt of 700 billion dollars the American government and the FED prepared a new life belt of 800 billion

dollars.

On December 7th the Italian paper La Republica” published the declaration of the Libyan ambassador to Rome

who said that his country would be glad to buy 10% of ENI. (On the basis of a bilateral agreement Italy shall pay

compensation to Libya for the colonial period

On December 11th declared the International Energy Agency its estimation that the oil consumption of the

world in 2008 is 85.8 million barrel a day which is a decrease of 0.2% compared to the previous year. It means

that after 25 years the oil consumption was reduced.

The Hungarian situation

The events in Hungary will be divided for two parts: statistics and the so-called Robin Hood tax.

Statistics

No country could withdraw himself from the world market tendencies, neither Hungary. From the point of view

of domestic retail prices the forint/dollars course plaid an important role which was formed as follows in 2008:

The maximum was 218.7 (on October 27th) the minimum 144.1 (July 15th ) forints that was given for one dollar.

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As a consequence of the international prices as was as of the dollar course the domestic prices were formed as

follows (data in forint/liter)

Due to the extremely high world market prices the domestic fuel prices hit records, as well. The highest price

of gasoline was 315.7 that of diesel 336.1 HUF/liter on June 23rd. The minimum was reached on December

15th. On that day one liter gasoline cost 233.1 one liter diesel 256.4 forints. The retail price of gasoline exceeded

that of diesel in whole year in spite of the fact that the tax of diesel is less by some 20 HUF/l.

The following fuel quantities were sold at stations of the member companies (data in liter):

Fuel 2008. 2007. Change (%)

RON 95 1 549 953 373 1 590 516 338 -2,5

RON 98 62 666 118 73 906 448 -15,2

Gasoline total 1 612 619 491 1 664 422 786 -3,1

Diesel 1 643 590 106 1 574 176 991 4,4

Fuel total 3 256 209 597 3 238 599 777 0,6

From the table one sees that the volumes of fuels sold did not change because the decrease of gasoline sale was

compensated by the increase of diesel sale. If one compares the two half years the same trends can be observed,

to be very exact the gasoline sales were reduced by 3.0% the diesel sales were grown by 4.5%. It is illogic because

the prices were increased in the first half and were sharply decreasing in the second one but the trend of

sales did not change. One can see furthermore that in the case of gasoline the leading product remained RON

95 with a market share of 96%. One can hardly find station selling “traditional” RON 98. In the reality the majority

of RON 98 to be found in our statistics are “premium products” with higher octane number (but they

must be classified as RON 98 because the maximum is 98 octane in the Hungarian standard).The number of stations

grew from 1,008 to 1,032 (2.4%).

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The Hungarian Customs and Finance Guard let us know that 2,087 million liters of gasoline and 3,471 million

liters of diesel were put into free circulation (the tax was paid after them) meaning a decrease of 0.8% and an increase

of 4.4% compared to the previous year.

The Energy Center let us know that in the wholesale (without tax) 1,563 thousand tons of gasoline and 2,978

thousand tons of diesel were sold meaning a decrease of 0.9% and an increase of 5.9% compared to 2007.

The member companies sold the following quantity of lubricants in the wholesale (data in kilograms):

Product 2008. 2007. %

1.Otto or diesel engine oil for passanger car 9 007 711 8 822 928 2,1

1.B. Diesel engineoils for commercial vehicles 9 713 543 10 529 104 -7,6

1.C. Two-stroke engine oils 478 575 522 160 -8,4

1.D. Other engine oils 1 776 440 1 591 441 11,6

Engine oils total: 20 976 269 21 465 633 -2,2

2.A. Automatic Transmission Fluids 843 585 848 867 -0,5

2.B. Automotive gear oils 3 508 079 3 408 521 2,9

2.C. Industrial gear oils 1 346 256 1 378 998 -2,4

2.D. Hydraulic transmission oils 7 684 898 8 062 168 -4,7

Gear and hydraulic oils total: 13 382 818 13 698 554 -2,2

3.A. Greases 1 469 580 1 451 612 1,2

4.A. Quenching oils 181 822 188 718 -3,7

4.B. Neat oils for metalwork 1 138 902 1 187 087 -4,1

4.C. Soluble oils for metalworks 1 616 220 1 808 606 -10,6

4.D. Rust prevention product 249 011 294 735 -15,3

Lubricants for metalwork total: 3 185 955 3 479 146 -8,5

5.A. Turbine oils 464 540 426 427 8,9

5.B. Electrical oils 1 292 173 2 704 166 -52,2

Highly refined oils total: 1 756 713 3 130 593 -43,9

6.A. Compressor oils 1 629 630 1 729 727 -5,8

6.B. General machine lubricants 4 396 733 3 339 362 31,6

6.C. Other industrial oils for non-lubricating purposes 2 957 898 2 691 639 9,8

Other oils total: 8 984 261 7 760 728 15,8

7.A. Process oil 1 346 318 2 089 493 -35,6

Total (without greases) 49 632 334 51 624 147 -3,9

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The sales with fuel card was formed as follows (data in liters):

Diesel

Month Sales (litres) Change* (%) Year to date Change*(%)

January 10 991 360 -6,5 10 991 360 -

February 11 696 231 3,1 22 687 591 -1,7

March 11 996 850 -3,6 34 684 441 -2,4

April 12 074 998 -3,1 46 759 439 -2,6

May 12 334 863 -1,0 59 094 302 -3,6

June 12 723 938 -1,0 71 818 240 -3,2

July 12 590 133 -1,5 84 408 373 -3,0

August 11 450 924 -7,6 95 859 297 -3,5

September 12 560 558 -6,2 108 419 855 -3,0

October 12 596 302 -3,7 121 016 157 -3,2

November 11 557 749 -11,6 132 573 906 -4,3

December 10 872 100 -2,5 143 446 006 -4,0

* compared to the same period of the previous year

Gasoline

Month Sales (litres) Change* (%) Year to date Change*(%)

January 45 085 698 -2,3 45 085 698 -

February 48 566 746 17,9 93 652 444 7,2

March 50 209 061 4,0 143 861 505 6,1

April 56 086 688 6,7 199 948 193 9,5

May 51 962 615 1,4 251 910 808 7,6

June 54 932 791 14,2 306 843 599 8,8

July 57 921 977 11,6 364 765 576 9,2

August 64 203 497 25,4 428 969 073 11,7

September 58 216 783 1,0 487 185 856 11,9

October 60 235 711 7,4 547 421 567 10,1

November 56 016 780 0 603 438 347 9,8

December 46 327 352 -9,8 649 765 699 8,2

* compared to the same period of the previous year

Robin Hood Tax

The country had the occasion to learn a new tax which is defined by on act that is not officially act on tax but the

act on making more competitive the remote heating, behind which stands the following story.

On September 15th Ferenc Gyurcsány, prime minister announced in the parliament he wanted to introduce

Robin Hood tax and he reasoned that more ten billion forints are needed for supporting those ones living in

block of flats that must be paid by – not really named – energy companies. The media informed that it means an

extra tax of 8 per cent for companies producing oil, gas, heat or electricity. Later on (when the text became public)

it was clear it does not touch the energy producers but the energy suppliers (including companies having excise

licence for retail or wholesale of petroleum products.

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Our Association asked in a standpoint the submitting Ministry of Finance to withdraw the proposal because it

makes torsion in competition, means penalty for effective ness and performance (which makes the investors unsure)

furthermore it is not a proper way for solving a social problem. Prior to it the president, one of the vice-president

and the secretary-general visited the head of the Economic Committee and sent forth the troubles of oil

industry in details.

The secretary-general spoke via phone to the secretary-general of the Hungarian Bank Association who informed

him, when a special tax – very similar to the Robin Hood tax – was levied on them they tried to protest on each

forum (up to the Court of Constitution) but they were always refused. All they managed to reach was reduction

on rate of tax. (The law-maker estimated incorrectly the combined profit of banks prior to taxation and in this

manner the banks should have paid much more than planned.)

The committees of the parliament declared the bill suitable for discussion on October 1st. On the next day in a

Budapest conference Pál Szabó minister responsible for energy asked the concerned companies for empathy. He

thought it might be not a well founded solution from professional Point of view but the government has no other

possibility.

On October 8th during the general debate in the parliament (as it was expected) just the governing party supported

the bill, all the other parties considered it improper for meeting its aim.

In the meantime the government has withdrawn the bills on tax containing significant reduction of tax, thereafter

our Association asked to withdraw the bill No 6308 (on making more competitive the remote heating) because

budget obviously contains the wanted 30 billion forints for remote heating. It did not happen but on October 21st

three socialist members of parliament mode a proposal for reducing the loop of payers (because each opposing

parties had declared not to support the new tax).

On November 3rd the parliament refused that modification proposal that proposed to cover the planned 30 billion

from the budget and not from extortion of energy companies.

Another modification was, however, passed that wants the act to come into force not on January 1st but on July

1st and change the loop of the interested companies (energy suppliers) to a certain extent but it did not concerned

the oil companies.

On November 8th it was declared in the media that just the (minority) governing party supports the bill and it

surely will not be accepted but on the closing voting on November 10th the bill was passed with the above modification

in a ratio of 190:184 (the voting was decided by the members of “oppositing” parties who did not

come).

Mol published immediately a standpoint he sets forth that introduction of the new tax means an increase of 50%

in company tax in energy sector which is a bad message for investors (as a consequence of the new tax the course

of the company started to fall in the exchange) and he reminded to the previous standpoint that the act is short

seeing and contains a discriminative fine for firms working at high level.

In the 161st issue of Magyar Közlöny (official paper of the government) the text of the act was published which

says that “energy supplier” in our case means “the wholesaler of petroleum product having excise licence” (the

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Hungarian legislation does not know such a licence) an economic journal wrote that Robin Hood tax means the

doubtful victory of overregulation and the manual regulation in connection with it (Figyelő, 47th issue, 2008).

When the bill was passed Tibor Szanyi declared that just one fifth of the sum will be used for support of invoices.

The spokesman of the government, however, declared in December that out of the 30 billion forints 20 billions

is used for gas price support in 2009 which is far more than 6 billions, the one fifth, and the remaining sum is

surely not enough for modernization of heating of half a million flats.

Our Association turned to the ministry a finance asking for a standpoint; as there exists no wholesaler of petroleum

products having excise licence who is to be considered as subject of tax in the petroleum industry and what

is the basis of taxation, each activity of the subject or just those activities which are in connection with the oil industry?

No answer in merit arrived by the end of the year they just wrote us that “due to the complexity of question

emerged between the touched ministries in order to meet a uniform standpoint conciliations are needed until

then our patience is asked”.

Important events

The number of the member companies was reduced to the earlier 17 to 12. About the end of 2007 ExxonMobil

and Agip as well as ConocoPhillips and Lukoil were merged, Kőolajtároló and IPR Vámosgyörk melted into

OPAL and in the course of 2008 Total stepped out from the Association.

The mandate of the President has expired, the member companies unanimously re-elected Dr. József Tóth who

began his sixth presidential period.

On March 1st two important changes happened in Hungary: the 1 and 2 forint coins were withdrawn from circulation

and serious limitations were introduced for heavy truck among others for tank cars.

The Inspectorate for Disaster Protection let us know that the new technical prescription on flammable fluids

has been elaborated by a workgroup and it can be found as an attachment to the National Regulation for Fire Protection

which is published in a CD but can be found in the homepage of Inspectorate as well.

On April 8/9th the Balkan and Black Sea Petroleum Association held its annual meeting in Budapest where to

secretary-general of our Association (on their request) had a lecture titled “Regulary framework in the upstream

and downstream activities in Hungary”.

On May 27th in 29 countries of Europe (EU-27 without Malta, plus Croatia, Norway and Switzerland) the “Energy

Efficiency Campaign” was started in the same time. On Union level the campaign was organized by EU-

ROPIA with Andris Piebalgs commissioner for energy. In harmony with the agreement between Europia and

the national petroleum associations in the various countries the “mirror” of the Brussels events were held. In

Hungary the overture of the campaign was held a press conference (in organization of the Association) by the

stakeholders (Agip, Mabanaft, Mol, OMV, Shell, and Tesco) for the media.

The EU declared the aim of “20-20-20 to 2020” which means that by 2020 the energy efficiency must be grown

by 20%, the carbon-dioxide emission should be reduced by 20% and the ratio of renewable must reach 20% (in

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the case of fuels 10%) within the energy use. By the end of May it was a workshop in organization of TÜV Rheinland

in Budapest in which Mr György Szerdahelyi chief advisor of the Ministry for Transportation, Telecommunication

and Energy said Hungary could increase the share of renewable to 15% with a state support of 400

billion forints (cca. 2 billion euros). To 20% the extend of support can reach 1,300 billion forints.

On June 11th in the morning wrote the internet portal FigyelőNet that the Hungarian government turned to

the European Commission with the request to make it possible for the road transporters to re-claim 10 HUF from

the excise tax of diesel because the excise tax of diesel is 85 HUF/l against 75 HUF/l (302 EUR/l) minimum

value fixed in the EU. (Had they gotten the license it would have been needed to modify the Hungarian act for

the text of the act on excise tax of legal force does not contain taxes depending on the users – but the Commission

did not discuss the Hungarian request at all.)

In the 123rd issue of the official journal of the government (Magyar Közlöny) was published the decree of the

minister of transportation, communication and energy on the quality requirements of fuels (20/2008 KHEM)

which comes into force on August 30th.

On the last day of August arrived the answer of the Ministry of Jurisdiction and Order which refused our request

relating to the drive-offs. (We wanted to learn if it is possible in the case of drive-off to ask the owner of the car

to pay as it is as it is done, on the basis of “objective responsibility” as it is in the case of speedsters. The Ministry

let us know that the owner of a car is “objectively” responsible in that cases which are listed in the act

CLXXV of 2007, practically traffic petty offences, in which one can not find drive-off which is theft.)

On September 5th, on the 15th anniversary of appearance of the act on excise tax the Hungarian Customs and

Finance Guard (VPOP) held a festive meeting where Dr. János Nagy chief commander of the VPOP gave our Association

the prize “Golden Medal of VPOP” for the activity we have done on their behalf.

On October 23rd the Hungarian forint touched a historical bottom to euro (286 HUF/EUR) thereafter it was

slightly increased.

In the course of the month almost each car manufacturer declared – referring to the financial crisis – to limit or

temporarily stop the production. Similar limitations must be done by the sub-contractors.

On October 29th the draft of modification for act on excise tax was sent us for information (not for comments!).

The material contains nothing from our previous proposals (e.g. the tax incentive of bio-fuels should not depend

upon the country – EU member or not - in which the raw material was produced) but increased the bio-component

concentration (needed for tax incentive) from the 4.4 V% so far to 4.8 V%.

On the first working day of November it was announced that the Hungarian car sales reduced by 16.5% in the

latest month compared to the figures of October, 2007. The fall in the period of I-IX. Months is 8%. (In the beginning

of the year the presidium of the Hungarian Car-importers predicted a decrease of 10%.)

On November 4th it was a meeting in the Ministry of Environment relating to the product fee. It was said, that

they want to modify the legislation to which preliminary comments are asked for (the letter of H.P.A. is attached)

and that a workgroup is established with participation of each interested party for the preparation of the new

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legislation. The workgroup is proposed to have a session once in a month and the drafts for modification should

be ready by May 31, 2009.

In the middle of November both MOL and OMV announced to re-think the plans due to the bad economic situation

(most probably it was done by all the oil companies, but they did not declare it),

In the very end of the month Shell announced the head of the Hungarian company, Mr. István Varga leaves. He

worked throughout 18 years for the company and was one of the vice presidents in the Association since 2003.

His successor at Shell will be Mr. Balázs Erényi.

On December 14th it was announced that at Zalakomár on the highway M7 an INA station would operate (the

Croatian had no station in Hungary so far).

The Hungarian daily Népszabadság wrote on December 16th that most probably 154 thousand cars are sold in

the domestic market which is a decrease of 10 per cent compared to 2007. The prospects for 2009 are even

worse the optimist calculate with the sale of 140 the pessimists with the sale of 120 thousand vehicles.

The situation is not better in other countries, as well, compared the sales in November of 2008 and of 2007 the

reduction in Spain is 50%, in the UK 37%, in Italy 30%, in Germany 18% in France 14%. Exemptions are the

Czech Republic and Poland where the increases are 10.7 and 2 per cent, respectively. On the next day Chrysler,

referring to its broken financial position, announced to stop production in plants for a month.

We were unable to reach in this year (too) the modification of the 43/1997 PM decree (Ministry of Finance decree

on losses at stations) although jointly with the Hungarian Customs and Finance Guard we emphasized that

its content was surpassed by the time. Just a promise has arrived from the Ministry of Finance that the modification

will be due in the beginning of 2009.

In the course of 2009 our guests were: Dr. János Veres minister of finance, Mr Tamás Varga (instead of Mr.

Zoltán Gőgös agricultural secretary of state), Dr. Gábor Katona vice-president of the Hungarian Mining and

Geological Office, Dr. Lajos Wallacher legal director of the Economic Competition Office, Dr. Péter Gordos

energetic secretary of state, Dr. Elek Mózs vice commander-in-chief of the Customs and Finance Guard and

Mr. Zoltán Bende secretary-general of the Union of the Hungarian Road Transporters.

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Financial Part

The planned and real expenditures for 2008 are shown in the attached table to which it must be mentioned that:

in total and (with two exceptions) in each item we remained within the forecasted figures;

the reasons for the two overspendings were due to:

= to move to a new office that was of the same area as the old one but were not built furniture so I had to buy two

pieces (281 thousand forints);

= one could not see in the very beginning of the year the Europe wide fuel efficiency campaign and its costs related

to the organization were paid by the Association in Hungary (528 thousand forints).

Plan

Fact

Office rent 3,700 3,316

Gross wages and taxes 16,800 16,103

Travel expenses 2,500 1,634

Office stationery 450 360

Operation cost of car 1,200 1,117

Postage, phone 800 780

Programs 1,000 375

Banking costs 300 123

Equipment replacement 0 0

Participation in market regulation 500 841

Website maintainance 1,000 334

External commissions 4,050 2,411

Out of which

Technical director 1,500 729

Lawyer 500 36

Cleaning 350 186

Auditor 500 360

Bookkeeping 1,200 1,100

Library, newspapers 250 53

Publication 1,000 300

Furniture replacement 0 281

Foundation 0 0

Total Expenditures 33,550 28,028

Reserves 465

Rand total 34,015 28,028

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