Fuel prices in Ukraine continue to decline—this applies primarily to diesel, which has dropped by another 1–3 UAH per liter over the past five days, according to price monitoring at select gas station chains conducted by Energoreforma.
According to the report, natural gas prices have also fallen by up to 1 UAH per liter.
Gasoline prices remain stable, at the same level as on June 17.
According to calculations by Serhiy Kuyun, director of the consulting firm “A-95,” the price of diesel fuel has already dropped by more than 12 UAH per liter from its peak of over 90 UAH per liter.
He noted that at the start of the crisis, the price of diesel fuel was 62 UAH per liter.
The expert also pointed out that smaller retail chains, which do not have remaining stocks of fuel purchased at high prices, are lowering their prices more aggressively.
Regarding gasoline, Kuyun explained that there is no noticeable downward trend, since the difference between the purchase price (customs value) and the retail price during the “Iranian crisis” only returned to its pre-crisis February level in June.
“In other words, there are no excess profits that could explain the slowdown in price reductions. Gasoline margins have completely collapsed, which is why prices aren’t really falling. Gas stations’ finances are currently being propped up by diesel, though that doesn’t prevent diesel prices from falling sharply,” Kuyun wrote.
At the same time, the director of “A-95” emphasized that Russian attacks on gas station networks continue, and these losses are also putting pressure on their finances.
“Last week, one of the major chains lost an oil depot containing $1.5 million worth of fuel. Another chain reports that it suffers 15–20 ‘lightning strikes’ every week in frontline regions. WOG has already lost 6–7 gas stations, each worth $1 million. Gasoline and natural gas tankers are burning,” Kuyun described the situation.
He also noted that there had been an initiative to create a fund to compensate for these losses, but so far there are no sources of funding for it.
Kuyun pointed out that current global prices are not the only factor in pricing, but given the level of competition and the large number of gas stations, supply sources, and logistical capabilities in the Ukrainian market, in his opinion, there is no chance of operating under any rules other than market ones.
For his part, Volodymyr Omelchenko, director of energy and infrastructure programs at the Razumkov Center, noted that autogas is once again becoming more cost-effective than gasoline, having dropped by more than 5 UAH/liter in one month and more than 7 UAH/liter in two months.
Meanwhile, gasoline prices fell by only 1.1 UAH per liter over the same period. He noted that currently, a liter of LPG costs approximately 56% of the price of a liter of A-95.
Omelchenko attributed this, in particular, to a decline in the wholesale price of LPG, which fell by 3.46 UAH per liter over the past month.
According to him, propane and butane prices have fallen in Europe, and the import parity for LPG has also declined since its April peak. As of June 19, it stood at 34.43 UAH per liter, compared to 40.95 UAH per liter on April 16.
However, he also noted that the price cap at gas stations is determined not only by European quotations but also by the influence of wholesale prices, logistics, taxes, exchange rates, security risks, and the safety margins of the networks themselves.
“Therefore, a decrease in external prices does not always immediately translate into an equivalent decrease at the retail level,” Omelchenko said.
As previously reported, fuel prices in Ukraine began to decline around mid-June amid reports of a stabilizing situation in the Middle East and falling oil prices. On June 19, Pavlo Kyrylenko, head of the Antimonopoly Committee of Ukraine, convened fuel market participants to discuss the situation.
He drew their attention to the fact that over the past few weeks, global markets have seen a significant drop in prices for crude oil and petroleum products, but in Ukraine, the pace of decline in retail fuel prices remains significantly slower than the pace of their previous rise.
Market participants were asked to provide further explanations regarding the reasons for the slower decline in petroleum product prices compared to their previous rapid rise, as well as the factors influencing how quickly lower petroleum product costs are reflected in prices for end consumers.
On June 17, Natalia Nikeshina, marketing director of the national network of gas stations operating under the Parallel brand, predicted that the potential for price reductions ranges from 6 UAH to 12 UAH per liter. According to her, the largest drop can be expected if European prices do indeed fall to pre-crisis levels.
UKRNAFTA has been ranked in the TOP-5 of the Institute of Consumer Expertise. Its experts checked compliance with state standards of diesel fuel at Ukrainian gas stations. As a result, diesel from UKRNAFTA turned out to be one of the highest quality on the market.
Sergiy Fedorenko, Commercial Director of UKRNAFTA, emphasizes that the company carefully monitors the supply of only high-quality fuel to the network.
“Before the diesel gets into our customer’s tank, it undergoes several laboratory tests: when the railcar or tanker arrives, when it is transferred to the fuel truck, and then directly at the filling station network. This is done by our laboratories as well as independent laboratories so that we can control the quality from several sides. This fully complies with DSTU and European standards,” he said in a commentary to the Yedynye Novosti TV marathon.
The TV spot reminds us that high-quality fuel is one of the main prerequisites for reliable and durable operation of your car. Because even one refueling, for example, with low-quality diesel, can lead to problems with the fuel system and engine. As a result, the car may face expensive repairs.
That’s why car owners choose only trusted gas station chains. And they, in turn, pay special attention to fuel quality control at their filling stations.
“So, of course, you need to look at the brand and the reputation of the filling station to be sure that there will be quality fuel. We carry gasoline from Poland and Germany, and diesel fuel from a huge number of supplier countries. Tankers from Canada, Sweden, Israel, and Greece bring diesel to various ports where we can import it,” added Sergiy Fedorenko.
“Ukrnafta is Ukraine’s largest oil producer and operator of a national network of filling stations. In March 2024, the company took over the management of Glusco’s assets and operates a total of 545 filling stations – 461 owned and 84 managed.
The company is implementing a comprehensive program to restore operations and update the format of its filling stations. Since February 2023, the company has been issuing its own fuel coupons and NAFTAKarta cards, which are sold to legal entities and individuals through Ukrnafta-Postach LLC.
Ukrnafta’s largest shareholder is Naftogaz of Ukraine with a 50%+1 share.
In November 2022, the Supreme Commander-in-Chief of the Armed Forces of Ukraine decided to transfer to the state a share of corporate rights of the company owned by private owners, which is now managed by the Ministry of Defense.
PJSC Ukrnafta imports gasoline and diesel fuel according to Euro-5 standards from Sweden, Poland, Lithuania, Greece, and Kuwait, the company’s press service reports.
In particular, it is diesel fuel and gasoline produced by Preem (Sweden), Orlen (Poland), Kuwait National Petroleum Company (Kuwait), Hellenic Petroleum and Motor Oil Hellas (both Greece).
“Ukrnafta is Ukraine’s largest oil producer and operator of a national network of filling stations. In March 2024, the company took over the management of Glusco assets and operates 545 filling stations – 460 owned and 85 managed.
The company is implementing a comprehensive program to restore operations and update the format of its filling stations. Since February 2023, Ukrnafta has been issuing its own fuel coupons and NAFTA cards, which are sold to legal entities and individuals through Ukrnafta-Postach LLC.
Ukrnafta’s largest shareholder is Naftogaz of Ukraine with a 50%+1 share. In November 2022, the Supreme Commander-in-Chief of the Armed Forces of Ukraine decided to transfer to the state a share of corporate rights of the company, which belonged to private owners and is currently managed by the Ministry of Defense.
PJSC Ukrnafta will offer a 3.3 UAH/litre discount on gasoline and diesel and a 0.5 UAH/litre discount on autogas on the 33rd anniversary of Ukraine’s Independence, the company announced on Facebook.
The promotion will run from August 23-25, 2024. It is open to Ukrainian citizens registered in the UKRNAFTA mobile application.
The offer does not apply to purchases of petroleum products in the app’s fuel wallet and when paying with NaftaPAY at the pump.
“Ukrnafta is the largest oil company in Ukraine and the operator of the national network of filling stations. In March 2024, the company took over the management of Glusco assets and operates 545 filling stations – 460 owned and 85 managed.
The company is implementing a comprehensive program to restore operations and update the format of its filling stations. Since February 2023, Ukrnafta has been issuing its own fuel coupons and NAFTAKarta cards, which are sold to legal entities and individuals through Ukrnafta-Postach LLC.
Ukrnafta’s largest shareholder is Naftogaz of Ukraine with a 50%+1 share. In November 2022, the Supreme Commander-in-Chief of the Armed Forces of Ukraine decided to transfer to the state a share of corporate rights of the company, which belonged to private owners and is currently managed by the Ministry of Defense.
The capacity of the Ukrainian gasoline market increased by 8% in 2023, LPG – by 18%, diesel fuel – by 25%, said Sergiy Yun, Director of the consulting group A-95 Sergiy Kuyun on Facebook.
“We have pushed off from the bottom-22. Preliminary growth in gasoline supplies is 8%, diesel – 25%, gas – 18%,” he wrote.
At the same time, according to the expert, this year’s gasoline balances have lost 16%, diesel – 17%, and autogas – 34% compared to 2021.
According to Kuyun, the collapse of the fuel market in Ukraine occurred in 2022 with the beginning of Russian aggression.
“In 2022, the market lost almost 2.5 million tons of diesel, almost a third of gasoline, and liquefied gas almost halved,” the expert said during a presentation of the results of the oil products market at the Ukraine-Ukrinform Media Center on December 21.
According to the preliminary data on oil product balances in Ukraine in 2021-2023, released by A-95 during the presentation, the forecast volume of the LPG market in 2023 was to be 1.283 million tons, gasoline – 2.275 million tons, and diesel fuel – 6.685 million tons.
Shebelynka gas refinery (Šhebel) has begun production of winter diesel fuel, according to a press release from NJSC Naftogaz Ukrainy on Thursday.“From year to year, the interest of our consumers in Shebel fuel is growing. Therefore, the issue of quality and reliability of products is in the first place. We are working to ensure that Ukrainian drivers have a worthy alternative to imports,” Commercial Director of JSC Ukrgazvydobuvannia Serhiy Fedorenko said.According to the company, the maximum filtration temperature of Shebel winter diesel fuel is minus 25 degrees Celsius (at the norm of minus 20 degrees Celsius), the sulfur content is up to 6.5 mg/kg (at the norm up to 10 mg/kg), and the cetane number is 50 (at the norm not less than 49).In production of Shebel winter diesel fuel, additives from the German chemical concern BASF are used, the technological developments of which the company uses in production of other types of motor fuels (Shebel 95, Shebel 92 gasoline).“With the beginning of the winter season with lower temperatures, it is planned to put out the Arctic diesel fuel Shebel,” the press release said.As reported, Shebelynka gas refinery, after the completion of the scheduled preventive maintenance in October this year, switched to production of diesel with improved low-temperature characteristics.Shebelynka gas refinery belongs to PJSC Ukrgazvydobuvannia, a 100% subsidiary of NJSC Naftogaz Ukrainy.
