Fuel prices are rising every week: who really sets the price of gasoline and diesel fuel?

The situation on the Ukrainian fuel market remains difficult: prices for gasoline, diesel, and liquefied gas continue to rise, leaving consumers unable to influence them. Energy expert Gennady Ryabtsev notes that both objective economic factors and the actions of large traders cause the price increase.

Ryabtsev notes that the main reasons for the price increase are the January 1 increase in excise duties, the devaluation of the hryvnia, and the rise in the cost of imported petroleum products. However, subjective factors also influence price formation: large traders can set prices above what is justified by market conditions, since the country lacks effective control mechanisms.

Previously, fuel prices were controlled by the Privat group, which had over 1,500 gas stations and could curb excessive price increases. After the nationalization of Ukrnafta and Ukrtatnafta last year, state authorities lost the ability to control. At the moment, Ukrnafta’s network has 662 gas stations, and even the state-owned company cannot influence the market effectively enough. Small businesses cannot compete with large players due to limited resources and weak political influence.

As a result, fuel prices have increased significantly: at the beginning of the year, the difference between the real cost and the prices of large traders reached 6–8 hryvnias per liter. The situation with liquefied gas is even more complicated. In winter, this type of fuel is used in producing countries as boiler fuel, which reduces its availability on the Ukrainian market.

The expert emphasizes that these market dynamics create additional inflationary risks and significantly reduce the purchasing power of the population. Earlier, approximately 260–270 liters of gasoline could be purchased for the average salary; now, this figure has decreased to 160–170 liters.

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