Business news from Ukraine

SWISS-BASED AVIA OPENS SIXTH FUEL STATION IN UKRAINE

Swiss-based AVIA network has opened the sixth fuel filling station in Ukraine on the route between Kyiv and Boryspil airport near the junction at Schaslyve.
The new AVIA station has five stands for refueling with petrol, diesel fuel, liquefied gas, as well as a store of 60 square meters.
“I am glad that we managed to launch another AVIA station in Ukraine, which confirms that the AVIA brand was well received in this market. The appearance of another AVIA station is also a good forecast for achieving our goal for 2020, which foresees the launch of about 30 stations of our network in Ukraine,” Robert Nowek, the Managing Director of the AVIA network in Poland and Ukraine, said.
As reported, in June 2019 the Polish company UNIMOT and Ukraine’s Wexler Group opened the first fuel station complex in Ukraine under the brand of the Swiss AVIA network.
During 2020-2022, the company planned to increase the number of filling stations under the AVIA brand to 100 units.
AVIA was established in Switzerland in 1927. Currently it has over 3,200 stations in 15 European countries.

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RETAIL SALES OF FUEL 20% DOWN IN UKRAINE

The volume of retail sales of oil products decreased by 20% over the week, March 14-21, a fall against the background of quarantine measures may reach 40-50% in April, Director of A-95 Consulting Group (Kyiv) Serhiy Kuyun has said.
“Over the weekend, I talked with the top managers and owners of several large fuel station chains. Everyone reported a fall in sales by 15% from the middle of the week, and by 20% or more over the weekend compared to the previous Saturday,” he wrote on his Facebook page on Monday, March 23.
According to him, the largest decline in retail sales is 40% in the western regions, primarily in Zakarpattia and Chernivtsi. At the same time, sales fell by 90% at fuel stations located close to border points.
Kuyun also said that expectations are also the same, namely sales decrease by 40-50% in April. This is very optimistic, given that in Italy fuel stations lost 70-80%.
Predicting the situation with fuel supplies to the Ukrainian market, Kuyun said that there would be no shortage of resources.
According to him, purchase prices have the potential to decrease in April by UAH 3 per liter for petrol, by UAH 2.5 per liter for diesel fuel at a rate of UAH 30/$1, and by UAH 4.2 per liter and UAH 3.7 per liter, respectively, at a rate of UAH 28/$1. At the same time, in the absence of hryvnia devaluation, a fall in the world prices for oil and oil products would lead to a decrease in purchase prices by UAH 6 per liter for petrol and UAH 5.5 per liter for diesel fuel in April, the expert said.
Due to the fall in the volume of sales of oil products against the background of quarantine, the decrease in revenue in cafes and shops, as well as the increase in the cost of operating a fuel station, namely employees’ transportation, provision of protective equipment, and disinfection of premises, a decrease in purchase prices will not lead to a change in retail prices, Kuyun said.

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INTRODUCTION OF DUTIES ON IMPORT OF DIESEL FUEL AND LIQUEFIED GAS OF RUSSIAN PRODUCTION ENTAILS PRICE GROWTH IN UKRAINE – OPINION

The introduction of duties on import of diesel fuel and liquefied gas of Russian production will cause price increases, weaken competition in the market and will not solve the problems of Ukrainian oil refineries, according to A-95 Consulting Group.
According to a press release, the group came to such conclusions following a study of complaints by Ukrainian fuel producers represented by PJSC Ukrtatnafta, PJSC Ukrnafta and JSC Ukrgazvydobuvannia to the Interdepartmental Commission on International Trade, in which they asked for an anti-subsidiary investigation and introduce duties on Russian diesel fuel and liquefied natural gas in the amount of 8.46% with an increase to 25.4% over five years.
“The main argument of manufacturers is dumping by Russian exporters, which is not true. Imported petroleum products, including Russian ones, are sold to Ukraine with premiums to the world quotes. So, for 2020 Ukrainian companies signed contracts for Russian diesel fuel with a premium to European quotes of up to $35/tonne, for liquefied gas of up to $22/tonne. This is due to the fact that Ukraine remains import dependent: in 2019, imports of diesel fuel accounted for 88% in the national balance, liquefied gas for 78.5%,” A-95 said.
According to the group, the most critical consequences of duties will be felt by the diesel market, which accounts for 70% in the basket of motor fuels. If the proposed duty is introduced at 8.46%, imports from Russia may cease completely, which will increase pressure on the remaining sources of supply, primarily Belarus, whose share will grow from the current 35% to 60% of the market. At the same time, the capabilities of Ukrainian producers are limited by a twofold increase in processing, which in the best case will allow raising the market weight from 12% to 25%.

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WEEKLY CHANGES IN FUEL PRICES IN UKRAINE

Average retail prices for petrol in Ukraine in the period from April 5 through April 12, 2019 grew by 0.7-1%, while prices of diesel fuel remained unchanged, according to data from the A-95 Consulting Group (Kyiv). Prices of LPG continued growing, by 2.86% over the reporting period.
As reported, the average retail price for LPG in March rose by 20%, to UAH 12.57 per liter.
Changes in average retail fuel prices UAH per liter in Ukraine:

©Source: A-95 Consulting Company

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WEEKLY CHANGES IN FUEL PRICES IN UKRAINE

Average retail prices for petrol and diesel fuel in Ukraine as of March 22, 2019, remained at the level of the previous week, while prices of LPG grew by 6.3%, according to data from the A-95 Consulting Group (Kyiv).
Changes in average retail fuel prices UAH per liter in Ukraine:

©Source: A-95 Consulting Company

WEEKLY CHANGES IN RETAIL FUEL PRICES IN UKRAINE

Average retail prices for petrol and diesel fuel in Ukraine in the period from February 15 to February 22, 2019, fell by 0.03-0.07%, while prices of LPG fell by 0.57%, according to data from the A-95 Consulting Group (Kyiv).
Changes in average retail fuel prices UAH per liter in Ukraine:

©Source: A-95 Consulting Company