The National Bank of Ukraine explained why the decline in global oil prices is currently not reflected in the cheaper prices of gasoline, diesel, and autogas at Ukrainian gas stations.
This is reported by Finway
Fuel Reserves Affect Prices
According to representatives of the NBU, changes in global oil markets affect fuel prices in Ukraine with a delay. The reason for this lies in the inertia of the market — retail prices do not respond immediately to fluctuations on the exchanges but with a certain lag. As emphasized by the National Bank, one of the main reasons for this phenomenon is the presence of significant fuel reserves purchased during periods of high oil prices. It is these more expensive batches that gas station networks are currently selling, which is why drivers do not yet see a significant decrease in prices at the pumps.
“Retail fuel prices change with a delay due to market inertia. That is, fluctuations in oil prices on global exchanges are not immediately reflected in fuel prices in Ukraine.”
Additionally, logistical costs, delivery specifics, and the peculiarities of the functioning of the domestic fuel market also affect price formation.
Which Fuel Is Rising in Price Faster
Experts from the National Bank noted that in recent times, price increases have affected all types of fuel, but the prices of diesel fuel and autogas have risen the most. Despite the fact that there was a partial decrease in oil prices on global markets in the middle of the month, the Ukrainian market responds to these changes much more slowly. This is why a noticeable decrease in prices for consumers is not currently observed.