Rising fuel prices in Ukraine: how world markets affect the cost of a liter

The Ukrainian fuel market has seen a significant increase in wholesale prices. The main reasons for this phenomenon are rising oil prices and exchange rate fluctuations. Experts predict that these changes will soon affect end consumers.

In January, wholesale fuel prices in Ukraine increased by more than 3 hryvnias per liter, which may lead to higher gas station prices. According to Serhiy Kuyun, director of the A-95 Consulting Group, in the first two weeks of the month, oil prices on world markets rose by about 10% – from $60 to $66 per barrel. Then the quotes decreased slightly, and Brent crude oil traded around $63.5 per barrel.

In conditions of growth, wholesale diesel fuel prices in Ukraine increased by about $60 per ton, or about 2.5 hryvnias per liter. The price increase was also affected by the devaluation of the hryvnia, which added more than 80 kopecks per liter to the cost of imported fuel. As a result, the total purchase price increased by more than 3 hryvnias.

The expert noted that the market margin has already offset part of this price increase, but it will not be possible to maintain prices at the full level. If the situation remains unchanged, retail prices may increase by at least 2 hryvnias per liter in the coming weeks.

At the same time, there is no reason to predict a fuel shortage yet. In December, Ukraine imported record volumes of diesel fuel, enabling it to meet domestic demand even amid increased consumption driven by frost and problems with electricity supply.