Economist Ustenko: Fuel Price Risk Lies with Domestic Manipulation, Not Iran

How the Middle East Conflict Affects Ukraine's Fuel Prices

According to ХВИЛЯ: Economist Oleg Ustenko has assessed the impact of the Middle East conflict on fuel prices in Ukraine. He pointed out that current global oil prices are significantly lower than the peak levels of March 2022, when oil reached $120 per barrel. At the time of his remarks, the price of oil was around $78 per barrel. Ustenko stressed that Ukraine is now fully integrated into the European fuel market, where there is currently no shortage. This integration is a key factor for price stability, as Ukraine's market follows European trends.

'We are now fully integrated into the European fuel market. Since there is no shortage in Europe and prices there remain absolutely stable, we have no macroeconomic grounds for panic here,' - stated Oleg Ustenko during a broadcast with political analyst Yuriy Romanenko.

However, he highlighted potential threats linked to possible price manipulation by major Ukrainian fuel station networks. 'There is a very real threat of possible manipulation by large fuel station networks in Ukraine, which could use news of the war involving Iran to artificially inflate prices for gasoline and diesel,' the economist added. He also noted that every time a crisis occurs in the world, there is an attempt by domestic players to pass imaginary risks onto the Ukrainian consumer. 'And they do this in advance, even before global trends actually impact the cost of their current purchases,' Ustenko emphasized.

A Call for Price Monitoring

The economist called for strict oversight from Ukraine's Antimonopoly Committee. 'There must be strict control from the Antimonopoly Committee. They should not just monitor the situation, but act preemptively-firmly demanding that retail chains provide economic justification for any price increases on their forecourt signs, to prevent cartel collusion,' Oleg Ustenko concluded.

Oleg Ustenko's statements underscore the importance of monitoring fuel prices in Ukraine, especially amid global crises that could affect the domestic market. In the context of global events like Middle East conflicts, maintaining stable fuel prices is crucial for the country's economic security. The call for proactive action by the Antimonopoly Committee highlights the need to protect consumers from potential market manipulation. This could be a vital step in strengthening trust in Ukraine's fuel market and preventing price speculation.