Diesel prices will rise: five reasons for the acute fuel crisis in Ukraine

The situation in the diesel fuel market in Ukraine

According to ХВИЛЯ: Diesel fuel prices in Ukraine may rise due to serious supply problems caused by losses of petroleum products and international sanctions. Recently, the situation in the fuel market has worsened, raising concerns about the supply of petroleum products, especially in autumn and winter.

Reasons for the crisis

• The ban on diesel fuel supplies from the Romanian port of Constanta, which came into effect on October 1, 2023, significantly complicates the import of necessary volumes of fuel.
• In October 2023, Ukraine imported 15% less diesel fuel than in the same month last year, totaling over 90,000 tons.
• In September 2023, 25% of petroleum product supplies were lost, further exacerbating the situation.
• The introduction of US sanctions, entering into force on November 21, 2023, concerns the 'Lukoil' and 'Rosneft' companies.

It should be noted that 'Lukoil' controls 25% of the Moldovan market, increasing risks for Ukraine in securing petroleum products. Meanwhile, the price of diesel fuel in Europe rose by a peak of 6 UAH/l since October 2023, while at Ukrainian gas stations, the price increased on average by more than 2 UAH/l.

Frankly speaking, the issue of securing petroleum products in autumn and winter is acute. We somehow survived October, but what is happening in November?

The main concerns are not about the price, but rather about securing fuel supplies. The situation requires urgent action to stabilize the market and provide necessary resources to the population.

The rise in diesel fuel prices in Ukraine can significantly impact the country's economy, especially during the autumn-winter season when fuel demand traditionally increases. The absence of stable supplies can lead to problems in the transport sector and many other industries that depend on petroleum products. Therefore, the government and relevant authorities must take measures to ensure market stability and minimize risks for consumers.