Ukrainian gas stations have already started raising fuel prices. According to Dmitry Lyoshkin, founder of the Prime Group of Companies, the rise in oil and gas prices on global markets, as well as the increase in the euro exchange rate against the hryvnia, are causing retail prices for gasoline and diesel fuel to rise.
This is reported by Finway
Main Factors Behind Fuel Price Increases
The expert notes that gasoline and diesel prices could rise by about 5 hryvnias per liter. In particular, the increase in the euro exchange rate adds up to 50 kopecks to the price of fuel per liter. Some gas station networks in Ukraine have already begun to raise fuel prices for consumers.
As for gas for vehicles, the expected price increase is 3.5–4 hryvnias per liter, although the pace may be slower. This is related to the decline in gas sales due to the expansion of electric vehicle transportation, which reduces demand for this fuel.
“Thus, we can say that prices have the potential to rise by up to 5 hryvnias per liter today for gasoline and diesel, and 3.5-4 hryvnias for gas. For gas, it may be slightly less, as sales are declining due to the ‘advance of electric vehicles’. Therefore, gas prices may be adjusted accordingly,” said Lyoshkin.
Additional Reasons and Market Situation
According to the expert, another influencing factor on prices is the desire of market players to increase their own profits. Since the number of gas stations has remained unchanged while the number of vehicles is decreasing, operators are trying to raise their margins to maintain business profitability.
Dmitry Lyoshkin also reported on the first cartel conspiracy in the fuel market since the beginning of the full-scale invasion. Wholesale suppliers are artificially limiting resource supplies and not unloading ships, which has led to a sharp price increase in Izmail by 1.5 hryvnias per liter. In the expert’s opinion, this phenomenon is artificial and temporary, and is unlikely to have a significant impact on fuel prices at gas stations nationwide. At the same time, he does not rule out the possibility of similar agreements among gas station owners.