OSCAR Downstream: a steady climb to the top

Operating on a market which is of strategic global importance and deeply intertwined with geopolitical, economic, and social factors, OSCAR Downstream has managed to grow steadily over the past 22 years, to become one of the top 5 companies on the Romanian fuel distribution market. Nicolae Banica, the CEO of OSCAR Downstream, told Business Review about the company’s development and plans for the future.

By Anda Sebesi

What was the biggest challenge OSCAR Downstream faced in 2023?

More than ever, this year we’ve experienced significant fluctuations in oil prices and higher pressure on global supply chains. At the same time, demand from B2B clients has grown, as overall economic activity has picked up to pre-pandemic levels. We’ve had to balance these diverging trends while preserving the quality of OSCAR products and services and protecting clients from the consequences of a more-than- usual unpredictable market.

What were the most important projects the company carried out in 2023?

A year ago, we kicked off a digitalization project at the national level, as part of our long term strategy, with the aim of ultimately providing clients with a seamless experience, an easier, more secure, and more transparent management of their fuel consumption, and more efficient and shorter filling times at our stations—a critical factor for our clients’ B2B fleets.

We implemented a new OSCAR fleet card management platform and upgraded the OSCAR Fleet Cards (the prepaid card OSCAR Easy and OSCAR Energy card which has a credit function), all configured using the most advanced contactless technology, a unique feature in our industry on the Romanian market. In parallel, we are also carrying out a rebranding initiatives and an automation process for our B2B fuel stations.

Where does OSCAR Downstream stand today in the local oil & gas market landscape?

We are the largest independent fuel distribution company in Romania, part of the Romanian Alfa Group established by entrepreneur Alin Niculae. Over the past 22 years, we have grown steadily and reached the top 5 of the Romanian fuel distribution market, despite not owning a refinery. We’ve invested over EUR 50 million to develop the largest, fully-integrated logistics chain in Romania’s fuel industry. The biggest part of our business is B2B-generated. We work with more than 5,000 clients from key industries such as transport, construction, industry or agriculture. We are also present on the retail segment through the RO fuel stations franchise, with more than 70 units around the country. Overall, our network exceeds 100 B2B and B2C stations, which are strategically distributed nationwide.

Separately, we operate more than 2,500 OSCAR DIESELPoint in-house fuelling stations, a concept we introduced as a premiere on the local market in 2004, which allows refueling directly on clients’ premises.

We also own the largest fleet in the fuel distribution industry (over 80 tank trucks), and a considerable, modern storage capacity for diesel and gasoline, exceeding 70,000 mc, in seven warehouses strategically located within 200 km from each other, so as to ensure efficient fuel supply anywhere in the country.

How important are ESG and sustainability criteria for OSCAR Downstream and the industry in general?

We are keeping up with trends and new technologies that are transforming our industry in other countries, with the hope that OSCAR will be the pioneer bringing these new technologies to Romania once market conditions are favourable. Diversifying our product offering to address sustainability needs is a priority for us. We have developed our fuel portfolio with new premium additivated fuels as OSCAR brands—ACTIS & FORTIS—, which are improved and environmentally friendly fuels, that are also available for retail customers through the RO gas stations network.

Furthermore, the Greenfield warehouses we have developed in recent years in Sercaia, Zadareni, Ocna Mures, and Roman are environmentally-friendly constructions equipped with premium technology. Investing in the refurbishment of the existing warehouses and the permanent renewal of the tank truck fleet have been major objectives for us.

What is the outlook for the oil & gas industry in 2024?

The fuel market holds strategic importance all over the world and it is deeply intertwined with geopolitical, economic, and social factors. The emerging conflict in the Middle East is expected to significantly impact prices in the coming years. Our main priority is to prevent any disruption in our operations and deliver the fuel on time, in the quantities our clients need.

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