Business news from Ukraine

DIESEL FUEL DEFICIT IN UKRAINE COULD AMOUNT TO 10% OF CONSUMPTION – EXPERT

The diesel fuel deficit in September may reach 60,000 tonnes, which is about 10% of the expected volume of consumption, said A-95 consulting group Director Serhiy Kuyun. According to him, the deficit, in particular, is facilitated by the actions of the Energy Customs, whose inspections suspended the shipment of imported diesel fuel at Yuzhny port.
“Yuzhny has stopped. It’s the second most powerful sea transshipment in Ukraine. One day’s worth of fuel shipment remains. The tanks contain 27,000 tonnes of diesel fuel from Greece, which have been transported here for several years. According to the latest data, the energy customs is preparing refusal documents for registering this batch … But the problem is that these 27,000 tonnes clogged the terminal, making it impossible to receive two more tankers carrying 30,000 tonnes scheduled to arrive in the second half of September. There is also decline in shipments from Belarus and still an empty pipe from Russia,” he said on Facebook.
Kuyun on Wednesday said due to the shortage the rush component in the price of railroad batches of diesel fuel reached UAH 2,900/t, an increase of more than 10%.

STATE-OWNED UKRZALIZNYTSIA COULD BUY DIESEL FUEL IN FOREIGN MARKETS

Ukrzaliznytsia is currently considering the possibility of entering foreign markets for the purchase of diesel fuel from direct producers, according to a press release from the company.
“In addition to expanding the circle of suppliers, this will allow removing significant pressure on domestic prices in Ukraine, which often takes place when the company purchases diesel fuel,” chairman of the board Yevhen Kravtsov said.
He noted that Ukrzaliznytsia consumes 10% of the total volume of this oil product, currently sold in Ukraine.
Kravtsov stressed that in order to avoid sharp price fluctuations in the domestic market of petroleum products, Ukrzaliznytsia should have foreign alternative supply channels, in particular, for diesel fuel.
“Our purchase of even 100,000 or 200,000 tonnes is not so decisive to cause price fluctuations [in the external market] as it is happening in Ukraine now,” he said.

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