Fuel prices may grow in Ukraine - expert

MOSCOW. Jan 16 (Interfax) - Retail fuel prices may grow by UAH2 per liter by the end of January, but gas station networks are not expecting a fuel shortage, A-95 Consulting Company Director Sergei Kuyun said, as quoted by Ukrainian media.

"If nothing changes, we're guaranteed to get UAH2 per liter in a couple of weeks. It's not ideal, but that's out of our control. The main thing is that there is and will be fuel. Everything else, as experience in 2022 shows, is secondary," the media quoted his statement on a social network.

There is more than enough fuel in Ukraine, he said. For instance, in December, Ukraine imported over 800,000 tonnes of diesel fuel, compared to consumption of 550,000-600,000 tonnes, a record high in the 30-year history of monitoring. Current supplies are also stable.

According to the A-95 director, fuel prices may rise not because of demand, but because of rising global oil prices and depreciation of the hryvnia. Specifically, over the two weeks of this year, oil prices increased by 10%, from $60 to $66 per barrel. Consequently, diesel fuel prices increased by $60 per tonne, or UAH2.5 per liter.

At the same time, the dollar exchange rate rose by UAH1 over the two weeks of January, while the euro gained slightly less.

"This is the most influential factor for fuel prices, because petroleum products are exclusively imported. UAH1 in the dollar exchange rate is equivalent to more than 80 kopecks per liter," Kuyun said.

Therefore, the combined increase in quotes and the exchange rate has already resulted in a rise in the purchase price of fuel of more than UAH3 per liter, he said.

First Deputy Prime Minister, Energy Minister Denis Shmygal said for his part during Hour of Questions to the Government at the Ukrainian parliament on Friday that Ukraine had a fuel stock for more than 20 days and was provided with fuel.