The Production Support Center, which is a subsidiary of the Ukrzaliznytsia public railway company, intends to buy diesel fuel worth UAH 5.5 billion in 2017. This amount is stipulated in the annual procurement plan, the Production Support Center announced.

According to the company, reform of the system for procurement of diesel fuel provides for the possibility of holding tenders in the ProZorro electronic procurement system, including by non-resident producers and traders.

In addition, a formula for calculating prices based on Platts (prices will be adjusted automatically depending on fluctuations on the fuel market) will be finalized and the procedure for procuring diesel fuel for next year will begin in the current year to ensure stable operation of the railways and prevent occurrence of crises. Implementation of these measures is planned for the fourth quarter of this year.

The management of Ukrzaliznytsia is also considering the possibility of creating a strategic reserve of diesel fuel totaling at least 30,000 tons, which is the monthly volume of consumption of diesel fuel by the railways.

As reported, the number of suppliers of diesel fuel has been increased to three – VOG Aero Jet, OKKO Business Contract, and Socar – this year. More companies participate in tenders for supply of diesel fuel for the railways, but the abovementioned companies win.

As reported, the Cabinet of Ministers recently allocated 9,000 tons of diesel fuel from the state reserve to Ukrzaliznytsia.