Romanian Post Office exceeds fuel budget

The Romanian Post Office, the largest player on the postal and courier services market, spent around 5.4 million RON (1.5 million euros) on fuel in the first 5 months of the year, 4% more than the budgeted expenses, although its vehicle fleet declined, by 82, to 1,039, according to company information. Most companies with sizeable vehicle fleets exceed budgets allocated for fuel acquisition, amid an over 20% increase in the price of fuel since the beginning of the year, generated by the rise in oil prices on international markets.
At the end of last week, the oil barrel came very close to the 150 dollar-mark, with experts saying it could even exceed the 200 dollar-mark by the end of this year.
“In the first five months of last year, the Romanian Post Office had 1,121 vehicles, and in the same period of this year, 1,039 vehicles. For the January-May period this year, the fuel budget was 5.17 million RON, but was exceeded by 4%,” according to company officials.
According to the quoted sources, fuel expenses amounted to around 5.5 million RON in the first five months of the year, while this year they reached approx. 5.4 million RON. Despite having exceeded the sums budgeted for this year, the company intends to boost its vehicle fleet.
“The Romanian Post Office has started the necessary procedures towards renewing its vehicle fleet. 727 vehicles will be acquired in leasing, 613 utilities and 114 cars,” said the quoted sources. The Romanian Post Office recorded turnover worth 312.8 million euros last year, compared with 231.2 million euros reported in 2006. The company’s net profit reached 9.6 million euros last year, up from the 7.9 million euros reported in 2007.
This year, the company expects a 40% turnover increase against 2007.
The Romanian Post Office dominates the mail market, where it holds a 95-96% share, but has only 13% of the courier market.