Gasoline Prices in Ukraine Surge Up

KIEV, Ukraine -- Gasoline prices in Ukraine have been on the rise day in day out. Whereas in the middle of July the growth was insignificant and observed only in some regions, in the last days of last month tangible growth was in sight at each filling station. Analysts predict that the 95-octane gasoline in August will be hard to come by for less than 0.8 dollars.

Kiev Gas Station

The first days of August have provided a confirmation. In the capital Kiev some major retail market operators already offer 95-octane gasoline for only a little less than the predicted level.

Prices are rocketing in the Crimean, Dnepropetrovsk and the Trans-Carpathian regions.

In the meantime, three oil refineries in Ukraine have suspended production.

The Odessa refinery has been stopped for routine repairs and maintenance, and the Kherson and Drogobych refineries had to suspend production, because crude oil available at 380-390 dollar a tonne leave no chance for them to offer competitive products. The stoppage of half of Ukraine’s refineries is fraught with major fuel shortages. Import may prove the sole solution.

Yet, Fuel and Energy Minister Ivan Plachkov is optimistic. He describes the situation in the domestic market of oil products as stable and predictable.

When the previous shortage of oil products occurred, measures were taken to maintain the stability of the market of light products and to protect it from the influence of subjective factors.

Plachkov has told reporters conditions have been created for the market to promptly adjust itself to the rates of taxes on imported oil products.

“There is no chance for overstating prices. The Ukrainian market merely responds to changes in the world one. There is nothing to worry about,” he said.

Russian oil companies control two-thirds of the Ukrainian market of oil products. They also account for 90 percent of the provided crude.

LUKoil owns the Odessa refinery, TNK-BP – the refinery in Lisichansk, Tatneft, that in Kremenchug, and the Alyans Group and Kazakhoil co-own the refinery in Kherson.

The Lisichansk Kremenchug and Odessa refineries account for 66 percent of the market of gasoline and 51 percent of the diesel fuel market.

According to the state statistics committee Ukraine in January-June consumed 1.571 million tonnes of gasoline, 7.2 percent less than in the same period last year.

Retail gasoline prices in January-June were up 50.8 percent on the year. In June they grew by 16.5 percent.

Source: Itar-Tass