Fuel in Ukraine could become the most expensive in Europe — experts

Топливо в Украине может стать самым дорогим в Европе — эксперты

The owners of Ukrainian oil refineries have the financial resource, without impacting the consumer

Any restrictions on imports will cause price increases and supply disruptions, which will result in overpayments to consumers at the pump.

Diesel fuel and liquefied gas in Ukraine may rise to a level where they will be the highest in Europe. This is stated in the message of the consulting group A-95, released on Friday, June 12.

This happens in the case of restrictions on the import of petroleum products, sought by Ukrainian refineries.

Due to the low volumes of fuel production in Ukraine, oil traders are forced to import, and growing demand is pushing up purchase prices, explained in A-95.

Therefore, according to experts, A-95, any restrictions on imports will cause price increases and supply disruptions.

“The imposition of tariffs and quotas on imports would hurt competition and cause a rise of the price of diesel and LPG to the European highs,” – said Director of consulting group a-95 Sergei Kuiun.

According to his calculations, the introduction of a fee of 8.5% of the present level of world prices will lead to higher wholesale prices for diesel fuel at least 1,000 UAH/t. Then the fuel costs for the largest consumers will increase.

Private and commercial sector overpaid 4 billion, the agricultural sector is UAH 1.9 billion, mining and metallurgical complex 700 million UAH, uz -300 million UAH, the Ministry of defence – UAH 100 million.

Kuyun also said that Ukrainian oil refineries belong to the most powerful financial-industrial groups – Privat and Naftogaz of Ukraine, is able to attract investment resources without increasing price pressures on consumers.

We will remind, earlier Oil and gas Association of Ukraine warned about the rise in price of fuel in the case of the introduction of an 8.5% duty on the supply of diesel fuel and liquefied gas from the Russian Federation.

Recall that the volume of oil transportation by pipelines to refineries in Ukraine in 2019 amounted to 2.38 million tonnes, that is 13.4% more than in 2018 and is the largest volume over the past five years.