Fuels supply sector newcomer StarOil will be the company to watch over the next few months, as its management has set an ambitious target of achieving a 10% market share by the end of the year.
StarOil’s Managing Director, George Petrou, told the Financial Mirror in an interview that “our targets are clearly defined. That is, the wholesale supply of high quality fuels at competitive prices in the
The company’s vision is based on specific targets and strong ethics, explained Petrou, who had previously managed the BP Cyprus operations until the company sold its retail station network to Hellenic Petroleum EKO four years ago.
“StarOil was not created to cause problems within the market, nor was it created to harm anyone.
Petrou believes that by selling directly to the consumer and by avoiding the high overheads that multinationals have and need to write off in order to report a profit, StarOil will be more flexible and attractive in pricing.
“Our combination of competitive prices, high quality and direct supply from source, has brought a positive response from consumers that has exceeded our expectations. Despite the fact that we started operating off-season, we are confident that our target for a 10% market share by the close of 2007 is achievable. Naturally, we plan to double that market share by 2008.â€
For now, StarOil will deal exclusively with commercial fuels, supplied by BP.
“We can supply these fuels at competitive prices because we do not use intermediate suppliers or middlemen, who raise the price of fuels to industry and to those who purchase wholesale for domestic or other use,†Petrou said.
“We shall continue to enhance our operations which will not be affected by other corporate contracts of the sector. Fuel supply is a complex sector open to many challenges, but StarOil has created a new dynamic. And who knows, maybe in the not-too-distant future we will be establishing a network of stations to sell fuel.â€
The
As regards his choice of BP as the main supplier, George Petrou was frank.
“It’s well known that I was an executive with BP for many years. It’s therefore logical and natural that I would choose to cooperate with them. But BP is also one of the biggest companies in the world in this sector, with high quality products. BP will remain our sole supplier because it can supply us with high quality products at prices that will let us be competitive. All products are imported from BP refineries using tankers that meet European safety regulations and the high standards required by BP. During import, storage and delivery, regulations are strictly followed as in every country where BP operates.â€
StarOil has two main shareholders – George Petrou’s family-owned Peta Co., controlling 60% and C. Casinos Constructions company with 40%.
“Apart from Larnaca where we have the receiving terminal we plan to have fuel depots in the main cities and other areas,†said Petrou.
“The purpose of having storage facilities in major towns is to be close to our customers, especially the industrial ones for prompt deliveries and reduced transport costs. Safety is the most important issue for BP and of course for StarOil – so all of our facilities are built and maintained to the highest standards.â€
The initial investment in facilities is in excess of CYP 1 mln (EUR 1,7 mln) and the distribution is made through associates thus making better utilization of fuel trucks. No more than six employees will be required for the whole operation, explained Petrou.
Finally, as regards the potential to sell fuels to the north, under the “Green Line Agreementâ€, Petrou said that StarOil’s attention is at present focused on the government-controlled areas.
“I have no opinion regarding the quality and prices of fuels in the occupied areas but, from what I hear, although cheaper the quality is poor.â€
