Key factors affecting fuel pricing
1. Dependence on the global market and external developments
Ukraine's petroleum products market is now almost entirely dependent on imports. As a result, any changes in the European wholesale market are rapidly reflected in domestic prices. Over the past 30 days, PLATTS quotations for petroleum products have increased by approximately USD 400 per tonne, driven by the escalation of hostilities in the Middle East.
2. Depletion of previously purchased inventories
Over recent weeks, filling station operators have maintained retail prices by relying on inventories purchased earlier at lower cost. These stocks are now being depleted, and retailers are transitioning to the sale of new consignments acquired at higher wholesale prices.
3. Exchange rate exposure
As petroleum products are purchased in foreign currencies—with supply contracts denominated in US dollars and euros—any changes in macroeconomic conditions or exchange rates have a direct impact on the hryvnia-denominated import cost of fuel at the border and, consequently, on retail prices displayed at filling stations.
Market operations under wartime conditions
The Ukrainian Oil&Gas Association (UOGA) emphasises that fuel supplies remain stable despite the ongoing challenges and threats facing critical infrastructure.
"Despite regular enemy attacks on fuel infrastructure, market operators continue to restore damaged facilities promptly and ensure uninterrupted fuel supplies. Today, the fuel market operates under wartime conditions every day, doing everything possible to support civilians, businesses, the agricultural sector, and the Defence Forces of Ukraine," said Yaroslav Starovoitenko, President of the Ukrainian Oil&Gas Association.
The market remains diversified and stable, with no grounds for concern regarding fuel availability or market disruption.
Background
The Ukrainian Oil&Gas Association is the industry's leading trade association representing the interests of the largest participants in Ukraine's oil and gas sector. Its membership includes the country's leading wholesale and retail fuel companies, as well as upstream and refining enterprises representing national and international, private and state-owned businesses. Members include WOG, OKKO, AMIC Ukraine, SOCAR, KLO, UPG, Orlen, Parallel, Ukrgazvydobuvannya, and Ukrnafta.
The Association actively contributes to the development of Ukraine's legislative framework, monitors and addresses key industry challenges, and works closely with government authorities, private and state-owned enterprises, industry and consumer organisations, consulting firms, and the media to promote and uphold European standards of quality across the market while safeguarding the interests of its members.
