The increase in fuel prices in Ukraine occurred with a delay compared to European Union countries. While fuel prices in the EU rose by 10.5% as of February 23, a similar level of increase was recorded at Ukrainian gas stations only on March 4.
This is reported by Finway
Objective and Subjective Factors Behind Fuel Price Increases
During a speech in the Verkhovna Rada, the head of the Antimonopoly Committee of Ukraine, Pavlo Kyrylenko, noted that the rise in fuel prices began on February 28. He reported that on February 27, market operators recorded a sharp increase in the volumes of petroleum product purchases: gasoline A-95 by 40-70%, and diesel fuel by 60-140%.
“On February 27, according to information from operators, the volumes of petroleum product purchases, particularly A-95 gasoline, increased by 40-70% for gasoline and 60-140% for diesel fuel,” said the committee head.
Additionally, during this period, there was a reduction in supply from European suppliers, who were forced to redirect their shipments to their domestic markets. Kyrylenko emphasized that after the shutdown of the only oil refinery in Ukraine last year, almost all light petroleum products are imported.
Among the key factors that influenced the price increase, he mentioned rising demand, decreasing supply, increasing real costs of petroleum products, and the rising costs of logistics services. Moreover, the logistics of fuel delivery in Ukraine significantly differs from that in Europe.
Market Inspection and AMCU’s Response
The AMCU is currently continuing to investigate possible violations of antimonopoly legislation by gas station operators during the fuel price hikes. Pavlo Kyrylenko does not rule out that some subjective factors may have also contributed to the increase in fuel costs.
The first reports of fuel price increases appeared on February 28. By March 2, the Antimonopoly Committee had sent official requests to the largest gas station networks and initiated dialogue with market operators regarding the justification for the price increases.