Slow demand for petrol and oil product sales and a surplus of refining capacity in Central Europe and the EU are raising questions about the long-term viability of the Czech oil refining sector. In the shorter term, Polish-owned Unipetrol, which controls three Czech refineries, is considering closing the smallest, Paramo, Lidové noviny reported, citing anonymous industry sources.

Prime Minister Petr Nečas’ (Civic Democrats, ODS) government may be uncertain what direction to take the Czech state-owned oil pipeline operator Mero and oil products storage company and processor Čepro — both of which are strategic and highly profitable energy-sector assets — but foreign refiners MOL (Hungary), Lukoil (Russia) and PKN Orlen (Poland) are keenly aware of the benefits of integration.