ProBuy Co. Israel

Understanding the Complex Supply Chain of Refineries: Why They Don’t Sell Directly to the Market or Retailers

Refineries do not sell their products to the market or retailers

Due to legal restrictions, refineries are not permitted to market their products directly. They must participate in specialized auctions accessible only to large purchasing agencies with sufficient cash collateral in order to sell their goods. Upon purchase, these mega-buyers then redistribute the goods via smaller transactions to the retail market. This process almost always involves a diverse middleman cohort of oil intermediaries with specialized operations, which contribute to moving these goods along the way toward successful exportation. These oil brokerage companies include small and large ventures that have become specialists within their domain. They are the brokerage companies handling the operations of the petroleum product sales.

The Refineries are not the sellers but the manufacturers only

The Refineries are the manufacturers. And, the agencies, in other words, the brokerage companies, are intermediary brokers who will organize and make the shipments and transportation for land and sea freights. Both may vary depending on the period, quantity, and work intensity. Also, the brokerage firm that performs the operation properly in one sale may not show the same performance in another sale. This varies from country to country, depending on the work assigned and the vendors serving in that country. In each product sale, we may use different brokerage companies. This would depend on their supply capacity, product quality, and transport and operation experience. Some have expertise in FOB, CIF, and DAP land or pipeline operations, while others specialize in FOB and CIF sea freight operations.

Why Petroleum Refineries Keep a Low Profile: The Untold Story

Neither the refineries nor the petroleum products companies that mediate the retail sales of refineries’ products do advertising because they ship the products produced in accordance with the previously planned capacity and production standards according to their customers’ demands and contracts to their delivery addresses. This means that neither petroleum product companies nor refineries plan and operate to produce extra production and market this extra production in order to make more profit beyond the demands and contracts they have. Both refineries and petroleum product companies refrain from engaging in promotional activities as they transport their products directly to customers based on pre-arranged agreements and production quotas. This approach enables them to avoid excess production and refrain from advertising surplus goods to boost profits. Essentially, the companies and refineries operate on a contractual basis that eliminates the need for self-promotion in order to increase sales. That is the main reason the refineries and petroleum product companies, which mediate retail sales, do not advertise their products. Their items are manufactured and transported using predetermined limitations and parameters set by their production principles. They produce and ship products according to their earlier projections of capacity and standards for production, fulfilling their customers’ contracts and delivering the products to the designated addresses. This means that they do not engage in producing additional products beyond their contracts to generate more profit.

Companies that operate on a contractual basis are often bound by strict parameters that dictate the scope of their operations. In such cases, their main objective is to fulfill the terms of their agreements to the best of their abilities, rather than seeking out additional opportunities for profit. This approach ensures that they maintain the integrity of their contractual obligations and foster a positive reputation within their industry.

Furthermore, companies that focus on producing additional products beyond their contractual obligations may run the risk of diluting the quality of their offerings and losing sight of their core competencies. By sticking to their contractual commitments, these companies can concentrate their efforts and resources on refining their existing products and services, ultimately leading to greater customer satisfaction and loyalty.

In addition, operating within the confines of a contract allows companies to manage their resources more efficiently. They can allocate their resources based on the specific needs outlined in their contracts, rather than engaging in speculative investments that may not yield a return. This approach enables them to minimize their financial risks and optimize their profits.

Overall, while it may seem counterintuitive to some, companies that do not engage in producing additional products beyond their contracts are often better positioned for long-term success. By focusing on fulfilling their commitments, refining their offerings, and managing their resources effectively, they can maintain a sustainable and profitable business model.

That’s why petroleum products marketers and even websites that aim to capture and seduce customers in a competitive market do not even have emails belonging to their own domain names. Only real sellers have Mail.ru addresses. Apart from this, there are no flashy websites and no email or telephone marketing efforts. In other words, this means refineries are not used to selling their own products. All of the companies that look or act like refineries, or the companies or people as if acting as the intermediaries of those refineries, trying to find customers in the Russian and Central Asian Turkish states, are all fake. Their websites are fraudulent websites. And marketing promotions are all fake and scams. These are mafia gangs that set up websites in the name of refineries as if they are officially representing those refineries and specialize in local and international fraud.

The Unseen Control: Oligarchs and Multi-Billionaire Funds in Petroleum Trade

The reason why the refineries are not promoting themselves is that petroleum refineries by law are not permitted to market their products to avoid oligopoly or kartel markets. In reality, the refineries put their products up for sale through auctions at certain times of the year, in order to determine the quantities of products they will produce in the future, according to their capacities. The companies that distribute petroleum products in local and international markets are the oligarchs who buy their goods in advance from the auctions of these refineries or the billionaire funds in the Union of Eurasian Countries who have huge amounts of money to invest. If you are approached by individuals or companies acting as if they are the official representatives of the refineries and trying to sell petroleum products on behalf of refineries, please make sure that they operate in this way to attract their prey.

You should indicate if you ask for the non-sanctioned products

On the other hand, not a single refinery product is supplied by us. It can be any refinery product from Kazakhstan, Kyrgyzstan, Turkmenistan, Uzbekistan, Russia, or Azerbaijan. You should indicate in the purchase order that you do not want to receive Russian-origin products. It is within our authority to substitute the agency identified in the sales agreement with a different one should you harbor an aversion to their services, prior to or after the maiden trial cargo deployment, or once any inadequacies become apparent. In the event that you are dissatisfied with the partnership established by our sales agreement, you have the option to request a change of agency prior to or following the first trial shipment. As long as you specify this requirement in the ICPO and Contract explicitly and promptly notify us of any issues, we are flexible and will comply with your request. For us to execute such a change, the revised condition must be included both in the ICPO and contract, per your requisition.

However, if you’ve signed a sales contract with us directly, without involving a local exporter company, informing us of a change in agent can be done through a simple verbal notification. This would ease the process of initiating the necessary agent change, facilitating the swapping of our exporting company.

If you have any question about the delivery methods or products just simply reach us from the contact section of this website.

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We are always safely alongside, and we are always safely afloat your products for our voyage.

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