If implemented, the cuts will slash revenue of energy infrastructure companies by tens of millions of shekels.
Sources inform ''Globes'' that the government committee headed by Prof. Uri Regev recommends cutting rates charged by energy infrastructure companies by 20-30%. The committee recently submitted its recommendations to the Ministry of National Infrastructures ahead of a final hearing on the issue.
If the draft report is approved, it could slash revenue of energy infrastructure companies by tens of millions of shekels. The affected companies include Petroleum and Energy Infrastructures Ltd., Delek Group Ltd. (TASE: DLEKG) subsidiary Pi Glilot Petroleum Terminals and Pipelines Ltd., and Paz Oil Company Ltd. (TASE:PZOL) subsidiary Aviation Services and Assets Ltd..
The report recommends a 15-36% cut in the storage charge for fuel and fuel products. It recommends no change in the fuel flow charge, except for a 2% cut in the fixed charge. The committee recommends no price controls on the distribution charge in the north, removing price controls on the distribution of crude oil, and to continue the maximum price control for the distribution of fuels in the rest of the country. The committee also recommends a 40% cut in the fuel flow charge for ships.
Published by Globes [online], Israel business news - www.globes-online.com - on April 14, 2008
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