Oil prices are rapidly falling in global markets
Since the beginning of the week, global oil prices have sharply decreased following U.S. President Donald Trump's announcement of a ceasefire in the Middle East. The price of a barrel of Brent crude has already fallen below 70 dollars. However, Ukrainian filling stations have not yet begun to lower the cost of gasoline and diesel fuel.
Particularly sharp declines in oil prices occurred on Tuesday, June 24. The price of a barrel of Brent crude fell by nearly 9 percent. This happened against the backdrop of Trump's statement regarding the cessation of military actions in the Middle East.
'When global oil prices decrease, we do not observe such a sharp decline in fuel prices in Ukraine. But when it rises, changes in prices at filling stations can happen very quickly. This is quite an unpleasant feature for traders,' explains the president of the Association of Ukrainian Banks, Andriy Dubas.
We remind you that fuel prices in Ukraine began to rise last week due to the conflict in the Middle East. Gasoline prices for A-95 grade have risen on average by more than 2.6 hryvnias per liter over the past one and a half weeks. Diesel fuel has become more expensive by almost 3 hryvnias per liter.
Positive effects of falling oil prices
Economist Oleg Pendzin points out the positive effects of falling oil prices: 'If oil prices exceeded 100 dollars, fuel prices in Ukraine would definitely jump around 12-13 hryvnias per liter. Now this can be avoided. But for Russia, the worst scenario would be a multiple increase in revenues.'
The decreasing pace of fuel devaluation may start to curb the growth of currency prices. The euro price is approaching the mark of 49 hryvnias. Ukraine heavily depends on fuel imports; last year, gasoline and diesel fuel were purchased from 15 countries, mostly EU countries.
Experts believe that there will be no fuel shortage in the Ukrainian market. There are no expected problems with the supply of gasoline, diesel fuel, and autogas to Ukraine, despite sharp fluctuations in global prices.
There is a rapid fall in oil prices worldwide, which has led to a decrease in gasoline and diesel fuel prices. Ukrainian filling stations are currently maintaining prices at a stable level, but experts confirm that a fuel shortage is not anticipated, despite geopolitical and financial turbulence.