Euro3 norms cost more but make EU accession easier

Starting January 1, 2002, only those cars compliant with Euro3 pollution norms will be allowed for registration. What does this compliance with European standards mean? Hundreds of millions of dollars invested for Romanian refineries and Romanian carmakers.

A bit more expensive Romanian cars, as well as imported cars no longer “choking.” The Association of Car Producers and Importers (APIA) gathered several Euro3 fans from fuel makers: Rompetrol, OMV, Shell, Agip and MOL, as well. Not SNP Petrom, though.

According to Petrom estimates, the necessary retooling for producing Euro3 gasoline would entail about $200 million in investments for each refinery. Those at Petrom also reckoned the demand for such a high quality gasoline would be low over the next period, therefore decided not to invest.

APIA estimates in their turn show that demand for Euro3 fuels will not exceed 2% of the market this year, only to increase to 5% in 2002. As for the prices, one litre of unleaded gas would cost 15-30% more than at the moment, while the rise in the diesel oil prices would not be that high.

LukOil has already announced it can produce Euro3 fuels while Rompetrol, owner of the Petromidia Refinery, says its products will be 100% Euro3 compliant in a matter of two or three years, while other dealers specify they will bring fuel from other countries, such as Hungary.

The buyers of this high quality gas and diesel will be especially imported cars owners, as the engines of these cars were manufactured in compliance with the Euro3 and even Euro4 standards, market analysts state. They say the gas currently available on the market makes those cars “choke,” all the more cause for headache and expenses for the owner and importer.

On the other hand, Petrom’s strategy is simple: since there are about 3.7 million cars in circulation on the market, of which only some 150,000 are disposed of every year, the demand for the good old cheap gasoline will not go away for years to come. One thing though: Romania’s EU accession negotiations could speed up the process.

For those travelling in their own car, the engine not working properly is yesterday’s news. Possible technical factors aside, there is only one cause left, namely that the gas is poor. If this is true and the part to be played by automotive producers and importers in Romania as well as fuel producers is to be revealed below.

Euro3 pollution norms entail basic modifications on the entire gas or diesel consumption circuit. Subsequently, new refining installations, as well as new generations of engines and catalytic converters are needed. The modifications will surely involve larger investments in productive capacities to be made by fuel and car producers, in case they do not have to build special installations.