By the end of the current month, Ukrainian consumers may face an increase in gasoline and diesel prices by 1-2 hryvnias per liter. This forecast was made by Dmytro Lyoshkin, the founder of the Prime group of companies, who justified it with several key factors affecting the fuel market.
This is reported by Finway
Main Reasons for Fuel Price Increase
Lyoshkin notes that the main factors driving up prices are the rise in global oil prices, the strengthening of the euro, and the increase in diesel prices. Fuel excise taxes in Ukraine are calculated in euros, so fluctuations in the European currency directly impact the cost of petroleum products for the end consumer.
Among the reasons for the increase in oil prices, the expert highlights information about Iran’s possible preparations for mining the Strait of Hormuz, which heightens tensions in the oil market. Additionally, atypical market behavior and the lack of active measures from the leaders of major countries traditionally influencing the situation also play a role.
Impact of Sanctions and Market Changes
The significant increase in diesel prices is due to the introduction of a new package of sanctions by the European Union. French President Emmanuel Macron has already announced that the new restrictions will include an embargo on Russian oil that has been processed in third countries. This forces European countries to switch to more expensive logistical raw materials, which also affects the Ukrainian market.
“What’s the bottom line? Buckle up, we’re taking off again. Not too much yet, but against the backdrop of expectations for price reductions, it’s already unpleasant. A 1-2 hryvnia increase in wholesale will reflect similarly in retail by the end of the month,” noted the expert.
At the same time, Lyoshkin predicts that by August, a decrease in global oil prices may be possible due to market correction, which could positively affect fuel prices in Ukraine. However, for now, Ukrainian drivers should prepare for fuel price increases at least until the end of the current month.