First Revision of Rates of Petroleum Products Natural Loss Drafted
On December 5, the extended meeting held by the Ministry of Energy and Coal Industry and chaired by the Minister of Energy and Coal Industry Ihor Nasalik himself was dedicated to presentation of the first revision of new Draft Rates of Petroleum Products Natural Loss prepared by the oil-and-gas department of the Ministry with active involvement of experts from the Ukrainian Oil & Gas Association and the Technical Committee for Standardisation of Oil-Refining and Petrochemical Products (TC 38).
The meeting was also attended by representatives from the Ministry for Economic Development, Ministry of Defence, State Reserve, other industrial ministries and authorities, and also of the State Enterprise (SE) MASMA, NJSC Naftogaz of Ukraine and PJSC Ukrgazvydobuvannya.
The draft was prepared based on the analysis of similar documents of EU-states, Belarus and Russia. The Polish standards of natural loss were used as a basis for calculations, because they are most structurally appropriate for modern requirements to such documentation.
We would like to remind you, that at the end of 2016 the Cabinet of Ministers of Ukraine has cancelled the Regulation of State Supply Committee of USSR No. 40, which had governed accounting for the natural losses of petroleum products during respective transactions. As a result, the national oil- and gas-industry had to face a strange situation, when businesses did not have any right to write-off non-recoverable losses due to such objective reasons as the vaporising, for example.
By the end of this year, the proposals drafted by our experts will be presented for public discussion at the official Web-site of the Ministry for Energy and Coal Industry, and afterwards, following the procedure adopted by the law, they should be approved by respective authorities.
“We plan, that new standards for natural loss of petroleum products will enter into full force and effect by the end of the first quarter of the next year,” — said Vitalii Horichko, the Head of Sub-Committee for Quality of the Ukrainian Oil & Gas Association. “We are ready to consider criticisms and constructive comments. Development of this document is one more step towards the harmonisation of existing regulatory and technical documentation in production and sales of petroleum products, and putting it in line with EU directives”.