Ukrainian businesses are increasingly reacting to rising fuel prices, with over half of companies already preparing to review the cost of their goods and services. These are the results of a recent survey among members of the European Business Association.
This is reported by Finway
Impact of the Fuel Crisis on Business: Numbers and Trends
According to the survey, 66% of companies have already felt either a significant or moderate impact from the increase in fuel prices on their operations. For 32% of respondents, these changes carry noticeable financial consequences, while another 34% report a moderate impact. 25% of companies indicated a slight impact, and only 9% have not yet felt any changes.
The main issue for most businesses has been the rise in logistics and transportation costs, as noted by 76% of respondents. 45% also reported an increase in the cost of production or services, while 30% are forced to adjust their budgets and operational plans.
According to companies’ estimates, the additional costs due to the spike in fuel prices are distributed as follows:
- 21% — costs increased by up to 5%;
- 24% — by 5-10%;
- 27% — by 10-20%;
- 4% — by more than 20%.
At the same time, 24% of respondents believe it is too early to assess the full scale of the consequences or have not yet felt an increase in costs.
Prices and Business Expectations Regarding Government Policy
20% of companies have already raised prices on their goods or services, while another 37% are considering this possibility in the near future. Meanwhile, 40% do not plan to change their pricing policy yet, and 3% are undecided.
Most surveyed companies will be able to maintain prices without passing on increased costs to consumers for no longer than 1-2 months:
- 23% — less than a month;
- 25% — 1-2 months.
Another 25% hope to maintain the current price level for 3-6 months, while only 10% expect to do so for more than half a year. For 17% of respondents, it is difficult to assess the possible duration of price maintenance.
“53% of companies indicated that the situation in the fuel market has not yet led to difficulties or disruptions in operations. Another 25% experienced minor difficulties, and only 8% reported significant operational challenges. For 14%, it is still too early to assess the impact.”
Among the main expectations from the government, businesses seek the introduction of a more flexible tax and excise policy, especially during periods of sharp price fluctuations. Companies also desire transparency and predictability in the fuel market, and for critical sectors, they expect additional support, as fuel costs are a significant part of their production expenses.