Bulgarian Empire

Chapter 151, The price of oil has risen

The genius remembers the address of this site in a second: (Apex Chinese), the fastest update! No advertisements!? The international crude oil price has soared, and the most affected is the logistics industry. It was hard to use the car to ban the horse-drawn carriage. I thought it would be good I made money, but because of the rise in oil prices, the cost increased significantly.

Trucks these days are not cheap, and they cost tens of thousands of levs, or even higher. Such a large cost has been invested in it. What else can I do besides grit my teeth?

Want to quit? late!

Originally, the logistics industry had just emerged, and it was the golden age. As a result, when the oil price rose, the golden age directly transitioned to the black iron age.

Belgium was the first to be affected. As one of the most industrially developed small countries in Europe, in order to improve efficiency, after the end of World War I, a revolution in the transportation industry broke out in Belgium.

"Luke, go ask why the price of oil has risen again. In less than three months, the price of diesel has doubled. Isn't this fatal?" A middle-aged man said angrily

"Dear Mr. Ham, the fuel company has called today to explain that the international crude oil price has risen, and they have to follow the price increase.

It is said that this time it was due to the outbreak of the Mexican Civil War, which caused a significant reduction in local crude oil production! ' Luke explained

"Hell, why are there so many bad things, first the oil fields in Sumatra were bombed by rebels, then the oil pipelines in Iraq were damaged, and now it's Mexico's turn?

Contact the fuel company, we want to order 10,000 tons of diesel oil, and ask them if the price can be lowered! said Ham, frowning.

If you don't know it, someone is manipulating the price of oil, and he won't be a Belgian shipping giant.

He knows what he knows, but he is still helpless. The Belgian government cannot be expected to intervene in international crude oil prices, right? Who will buy their account?

Since the arms can't twist the thighs, it's better to stock up on a batch of fuel in advance, and it's too late to start at this time.

"Okay, Mr. Ham!" Luke replied without hesitation

"Mr. Ham, do we want to raise some shipping costs? According to the current situation, we basically have no profit!"

"Well, good James, you communicate with customers and explain to them the reason, it's not that we want to raise the price, it's that the price of oil has risen, and there is nothing we can do about it!

The shipping fee will be increased by 35% for the time being. If the oil price continues to rise, then we will also increase the price! ”Ham said after thinking for a while.

"Yes, Mr. Ham!" James replied

Ham's transportation company is not small, with more than one hundred vehicles under its banner, all of which are gas guzzlers. If they run, they will consume more than ten tons of fuel every day. If it accumulates over time, this is not a small number.

According to the current price of refined oil in Belgium, each ton of fuel costs 321 levs, and the cost of fuel costs 4,000 to 5,000 levs per day.

One month costs more than 100,000 levas, which is the largest cost in the logistics industry.

The increase in fuel prices has had the biggest impact on the logistics industry, not only for automobile transportation, but also for ocean transportation.

In the past few years, oil prices continued to drop, and everyone consciously eliminated steam engines, instead of burning coal and burning oil.

At this time, the rising oil price has affected the transportation industry in an all-round way, and it is still spreading to all walks of life.

A large increase in cost will inevitably lead to rising prices, but now the supply exceeds demand, and if the price increases, the products will lose their competitiveness. If the price does not increase, the high cost will drag down the enterprise.

Don't expect everyone to raise prices collectively, because it is useless to increase prices at the same time. Consumers have no money in their hands and cannot afford high-priced goods.

If you are a smart person, the best way is to immediately reduce production and cash out as much as possible. This is the biggest drawback of the real industry, which is too much affected by the market environment.

Under such circumstances, most people can only hold on. Everyone has a fluke mentality, and the price increase is only temporary. When crude oil returns to normal, everything will return to the right track.

It can be said that Ferdinand was responsible for this economic crisis, and the hidden dangers have been deeply buried. Now we only need to wait for a fire in the stock market to detonate all this.

Once the stock market plummets, the banking industry is overwhelmed, and companies will naturally be unable to continue to obtain loans from banks. The capital chain is broken, and it is difficult not to go bankrupt.

At this time, the major powers are okay and have a deep foundation, and the consortium will come out at this time to annex the company's factories.

These are minor issues, no matter who owns these businesses, as long as they survive.

High-quality enterprises were merged, and inferior enterprises were eliminated. Relying on the support of the colonial market, the survival of the fittest was carried out.

This is why, after the outbreak of the economic crisis in the history books, the Germans chose to go to war, and the Americans supported the war behind the scenes, while Britain and France, which also suffered from the economic crisis, quickly got rid of the crisis.

"Your Majesty, international crude oil prices continue to rise, and domestic fuel prices have also risen sharply. I'm afraid a new crisis is coming soon!" Chancellor of the Exchequer Kennedy said worriedly

You know, if you want to do a full set of acting, even if you want to pretend, it must be true.

The oil fields in Sumatra were indeed bombed, as evidenced by the photos taken by reporters. The oil pipelines in Iraq are indeed broken. Didn’t you see that they are being “overhauled” now?

In short, the current international crude oil production has dropped by 10%, and oil companies have suffered heavy losses. Therefore, the price of oil has doubled sharply, and it will not work if the supply exceeds the demand and does not rise!

"Well, this is inevitable. The current economy is not normal. Now that the fuel price is rising, it can only be regarded as adding a catalyst to it.

The domestic impact should not be too great. As the world's largest fuel exporter, we should be regarded as the profitable party, right? " Ferdinand asked with concern.

"The domestic oil price has also risen sharply, but our oil price is already lower than that of foreign countries, and companies still have an advantage in production costs!" Kennedy thought for a while and said

Sure enough, the big oil-producing countries are the most suitable for playing industry, and the inherent cost is much lower. If there is such a big advantage, if you still can't get results, then it is really hopeless.

Whether Ferdinand is willing or not, the oil industry has become a pillar industry in Bulgaria. In addition to producing crude oil, oil refineries have sprung up one after another, creating the brilliance of Bulgaria's oil industry.

Ferdinand is not a local tycoon in the Middle East. Just selling crude oil is enough. In fact, Bulgaria prohibits the export of raw materials, and crude oil is no exception. If you want to export, you must first process it.

In this way, the oil industry will not be able to explode. It can be said that as long as Bulgaria does not export fuel oil for a day, the European economy will struggle three times.

"Let's judge according to the actual situation. If the impact is too great, we will give the transportation industry a tax refund!" Ferdinand thought for a while and said

"Yes, Your Majesty!" Kennedy replied

Anyway, the higher the oil price rises, the more Bulgaria's fiscal revenue will increase. The issue of curbing the rise of oil prices has never been the concern of oil-producing countries.

Even if the international oil price has risen to the sky, Bulgaria is also the biggest beneficiary, which is much more beneficial than the future generations of Americans who control oil prices.

It would be the best if some competitors can be defeated and the industrial development of various countries can be hindered through rising oil prices.

"Your Majesty, the League of Nations has finally reached an agreement on the Russian debt issue. West Russia will assume 58% of the debt. Nicholas II is probably going to be pissed off!" Medev gloated.

"Oh, it looks like we need to prepare money, I'm afraid Nicholas II will sell Ukraine soon!" Ferdinand said with a smile

"Your Majesty, how is this possible? The representatives of Western Russia have made a guarantee in the League of Nations that they will never sell the Ukrainian region, otherwise they will not let them pass the border?" Megev asked suspiciously

"Fifty-eight percent of the debt, that is to say, West Russia has to bear at least 1.75 billion pounds of foreign debt. The interest-free loan due this year alone is as high as 120 million. Is their fiscal revenue enough to repay it?

There are also debts due in the previous two years. Unfortunately, once these interest-free loans are overdue and cannot be repaid, they become interest-bearing loans, and the Western Russian government will not even pay the interest.

Even if it is to restore the economy, it is impossible to do it in an economic crisis, right?

Then we can only bargain. The economic crisis broke out and everyone's life is difficult. It is impossible for all countries to make concessions on debts at this time.

If they don't want to be crushed to death by debt, they have to abandon their pawns and save their handsome men!

For the current Western Russian government, reputation is their last pillar, and Nicholas II dare not renege on his debts! said Ferdinand with a sigh.

Seeing that the plan was about to succeed, Ferdinand was not happy at the last moment, but felt an indescribable feeling.

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