Gas station networks in Ukraine have been forced to raise fuel prices, including that which was imported before the increase in global prices, in order to ensure the import of new batches and prevent resource shortages.
This is reported by Finway
State of the Fuel Market and Factors Affecting Prices
The Head of the Antimonopoly Committee of Ukraine, Pavlo Kyrylenko, emphasized that the fuel market in the country remains competitive, and none of the participants holds a monopoly position. According to him, there are several dozen gas station operators in Ukraine, including both large and medium-sized companies. The market operates under free pricing, and there is no state price regulation.
The Antimonopoly Committee has already conducted a detailed analysis of the reasons for the rise in fuel prices. In particular, the situation was examined where fuel stocks purchased earlier were not sold at the old prices. Operators explain this by the necessity to sell fuel at a price that allows for the purchase of new batches at the already increased prices. If the remaining stocks were sold at a lower price, companies might not have enough funds to purchase the next volumes, which would lead to shortages.
Changes in Imports and Additional Challenges for the Market
Additionally, Kyrylenko pointed out that after February 28, foreign suppliers began to reduce the volumes of fuel shipments to Ukraine – initially by a third, and then even more. Some networks found themselves one step away from a situation where they could receive only half of the contracted volumes, creating additional risks of shortages. At the same time, transportation tariffs increased, and most suppliers switched to full prepayment.
“If in 2022 the main problem was logistics, now it is the availability of resources: EU countries primarily secure their own markets, and Ukraine is supplied with fuel only after meeting the internal demand of EU countries,” Kyrylenko said.
Therefore, gas station networks could not lower prices, as this would make it impossible to purchase new batches of fuel and could lead to market shortages. Kyrylenko emphasized the need for a balance between prices and stable resource availability.
The Head of the Antimonopoly Committee also noted that the initiation of a case regarding the justification for the increase in fuel prices does not mean that the regulator has already established any violations. The investigation into possible anti-competitive coordinated actions is ongoing. Even if market participants raised prices almost simultaneously, this does not necessarily indicate the presence of collusion – it is necessary to determine whether there were agreements between them regarding the timing or magnitude of the price increases. Moreover, operators have different cost and logistics structures, which also affects price levels.