Oil Businesses Agree To Cap Gasoline Prices In Ukraine As Prices Climb Sharply: Minister

KIEV, Ukraine -- Ukraine's oil businesses have agreed to cap gasoline prices, the energy minister said Monday, amid a dramatic spike in prices that has alarmed consumers and prompted calls for the government to intervene.


Retail prices for both gasoline and diesel fuel have climbed about 10 percent in the past three weeks in Ukraine, reflecting record high world oil prices and increased tariffs from Russia - a major source of Ukraine's fuel.

Fuel and Energy Minister Yuriy Boyko told reporters that oil companies representing about 60 percent of Ukraine's fuel market agreed to cap retail gas prices at Hr 4.7 a liter ($0.93) and diesel prices at Hr 4.1 a liter ($0.82).

He said the government set the caps, taking into account world oil prices and tariffs, as well as consumers' interests.

He also said that if fuel stations did not respect the agreement, they would be barred from receiving shipments from refineries.

Viktor Yanukovych, who was confirmed prime minister last week, earlier pledged not to interfere in market forces on gas prices - in an apparent attempt to avoid the mistakes of former Prime Minister Yulia Tymoshenko, who threatened companies with lawsuits if they did not institute price caps.

Her threats caused a fuel crunch at many gas stations and ultimately led to her being fired by President Viktor Yushchenko.

"We will follow market economy rules and our law .. no administrative measures by us," Yanukovych vowed.

Source: AP

Comments

philibert said…
I may move for work to the city of Uzhgorod in the west of Ukraine and I wanted to thank you for the quality of the information on your blog.

Philippe from France
Nicholas said…
Thank you, Philippe.