When will Ukraine face a fuel shortage: Getmantsev’s frightening forecast
8 March 02:18
Due to Iran’s likely blockade of the key oil and gas transit artery running through the Strait of Hormuz, oil production in the Middle East will have to be reduced. As a result, fuel production will be reduced, leading to a real shortage. According to "Komersant Ukrainian", this warning was issued by Danylo Getmantsev, chairman of the parliamentary committee on finance, tax, and customs policy.
Citing analysts from leading US bank JPMorgan Chase & Co, he noted that after the Strait of Hormuz is blocked, oil production in the Middle East will continue for a maximum of 25 days, after which it will have to be reduced.
“According to experts in the Ukrainian fuel market, a shortage of fuel and lubricants could arise in our country as early as April,” Getmantsev stressed.
The MP proposes to hedge against risks and encourage key market operators, in particular Ukrnafta, to enter into long-term contracts for the supply of petroleum products.
“It is worth exploring opportunities for forming a strategic reserve of petroleum products in neighboring partner countries. Such a reserve would avoid problems with fuel supplies for the defense forces, which require uninterrupted daily supplies, as well as for farmers during the sowing season,” he said.
Getmantsev also considers it necessary for the government to consult with representatives of companies supplying petroleum products to Ukraine.
“The task is to prevent a shortage in the domestic market. To hold preliminary negotiations with our international partners in order to reserve the necessary volumes. Under no circumstances should new risks be ignored. They are very serious,” he warned.
Incidentally, Ukraine plans to stabilize the fuel market by tightening control over markups and attracting state resources. Current price fluctuations are mainly due to external factors, but the government is implementing a set of measures to protect consumers.
