Business news from Ukraine

Business news from Ukraine

Petroleum&LPG Ukraine 2025 brought together 280 participants from fuel market

On December 4, Kyiv hosted the Petroleum&LPG Ukraine 2025 forum, a long-standing meeting place for operators in the Ukrainian petroleum products market. The conference brought together 280 delegates from 120 companies in the fuel sector, representatives of government agencies, and companies. The forum was organized by the A-95 Consulting Group.

One of the main topics of the conference was international cooperation. Representatives of the Ministry of Energy of Ukraine, Naftogaz of Ukraine, Ukrnafta, and the Polish energy company ORLEN S.A. took part in the discussion. As noted by Robert Kwiatkowski, Director of Strategy and Strategic Transformation at ORLEN S.A., Ukraine is a strategic direction for the company’s current activities and development.

“We understand that if we do not help Ukraine, it could be our biggest mistake,” said the Polish top manager.

ORLEN is currently the largest supplier of light petroleum products to Ukraine: according to the A-95 Consulting Group, in 2023-2025, gasoline supplies increased threefold, and diesel fuel supplies increased one and a half times. The company is also a major supplier of road bitumen, lubricants, and petrochemical products.

Serhiy Koretsky, Chairman of the Board of Naftogaz of Ukraine, spoke very highly of the company’s cooperation with the Polish concern.
“ORLEN has become so deeply integrated into the Ukrainian market that sooner or later, the company will likely acquire its own assets in Ukraine,” said the head of Naftogaz, who is actively developing cooperation with the Polish concern in LNG imports and other areas.

According to Deputy Minister of Energy Mykola Kolisnyk, integration into the EU is a guarantee of long-term development of the Ukrainian fuel market. He noted that the transition of the Ukrainian fuel market to EU standards requires the introduction of high environmental standards and modern approaches to the processing of petroleum product waste.

A separate session was devoted to tax discipline, attended by a large delegation of leading officials from the State Tax Service, headed by Acting Chair Lesya Karnaukh. She gave preference to public communication with forum participants, who had a unique opportunity to ask any questions. The greatest interest was in the mechanism for companies to be included in the list of “risky” ones, as well as the tax authorities’ approaches to tax payment standards.

“Without interaction with the market, which strives for fair conditions, we will not be able to work effectively. We are not a punitive body; our goal is to fairly determine tax liabilities,” Lesya Karnaukh said following the discussion.
In turn, A-95 estimated that in 2023-2025, the payment of operating taxes by the largest gas station chains would increase more than twofold, by almost UAH 10 billion.

Other topics of in-depth discussion at Petroleum&LPG Ukraine 2025 included post-war development of maritime and railway infrastructure, creation of petroleum product reserves, development of the bioethanol industry and use of alcohol-containing gasoline, electromobility, and expansion of non-fuel activities at gas stations.

“The fuel market remains the most resilient energy sector thanks to the comprehensive restructuring of the geography and logistics of supplies in 2022. Despite constant shelling and losses, companies in this market are a reliable support for consumers and the state, ensuring stable fuel supplies and paying taxes that are growing year after year,” said the event moderator, Director of the A-95 Consulting Group, Serhiy Kuyun.

The conference partners were traditionally the largest market operators: ORLEN S.A., JSC Ukrnafta, OKKO, UNIMOT S.A. (Poland), UPG, Kemexon (Switzerland), JSC Energo Trade, Western Fuel and Energy Company, AGTG (Switzerland).
The Petroleum&LPG Ukraine 2025 forum has been held annually by the A-95 Consulting Group since 2023. From 2009 to 2019, the company held the Petroleum Ukraine conference, and from 2010 to 2020, the LPG Ukraine conference.

In 2022, the annual Petroleum Ukraine forum was also launched in Warsaw. Warsaw, which is one of the largest events in Eastern Europe dedicated to the motor fuel market.

Interfax-Ukraine is an information partner.

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NUMBER OF GAS STATIONS IN UKRAINE DECREASES 3 TIMES SINCE BEGINNING OF WAR – DIRECTOR OF “A-95”

Since the beginning of the war, the number of gas stations in Ukraine has decreased three times, and private fuel consumption has decreased by about the same amount, said Sergey Kuyun, director of the A-95 consulting group.
“According to our estimates, a third of the total number of gas stations is operating, this is about 2.5 thousand stations, before the war there were 7.5 thousand. Of course, the main reason is the lack of fuel. Consumption has also decreased three times compared to the pre-war level,” he said at a closed briefing at the Media Center in Lviv on Monday.
At the same time, Kuyun noted that traders or network owners are forced to provide their most strategic and powerful facilities, located mainly in regional centers or on main routes, while peripheral stations are forced to stand idle, although there are also a lot of consumers there.
According to him, the shortage of fuel became especially aggravated after the shutdown of the Kremenchug Oil Refinery as a result of a missile attack by Russian invaders.
“Many companies, especially in central, eastern and southern Ukraine, have lost their main source of supply for themselves. The only way out for them is to independently import through the western border. This is mainly about the fact that small regional companies go abroad with fuel trucks and bring fuel,” he explained.
At the same time, the state’s restriction of fuel prices and the high cost of delivery does not allow to activate this type of supply, the expert believes.
“This supply is very long, only 800 km can be traveled to the border. And the cost of this fuel is higher than the prices set by the government. Accordingly, they do not have any economy or at least a break-even level, and, accordingly, there is no motivation,” he said. director of “A-95”.
In his opinion, the way out of the situation could be a temporary waiver of state regulation, so that as many companies as possible could leave and bring fuel from abroad. However, there are no signals yet that the government is ready to take such steps, he noted.
“There are certain debates going on, let’s hope that we will wait for the right and necessary decisions,” Kuyun said, adding that the government is worried about prices in this case.
At the same time, he called responsible the decision to significantly reduce taxes on fuel, although already insufficient. “In fact, it abolished these taxes altogether, a very necessary step, but then we had a working Kremenchuk Oil Refinery. Now the situation has changed and requires new steps to fill the market. There can be no simple solutions in this situation,” the expert expressed his conviction.
As reported, in March, the Verkhovna Rada, at the initiative of the government, zeroed out the excise tax on fuel and lowered the VAT rate to 7% from 20%.
According to the government’s decision, the price of “premium fuel” cannot be more than 5% higher than the price of conventional fuel. As of the end of March, taking into account the marginal trade margins, the maximum price for “regular” gasoline for sale through a network of filling stations should not exceed UAH 33.53/liter, for “regular” diesel fuel – UAH 37.43/liter.
On April 2, the Russian invaders destroyed the infrastructure of the Kremenchug oil refinery with their shelling, and it stopped working.

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