The Rada has passed a law on strategic fuel reserves: how the new system will work
4 March 17:44
The Verkhovna Rada has passed a law on the formation of a strategic fuel reserve. The document provides for the creation of minimum reserves of oil and petroleum products, which will be used exclusively in crisis situations. This was reported by the press service of the Verkhovna Rada of Ukraine, according to "Komersant Ukrainian".
The decision was made against the backdrop of a sharp rise in prices at gas stations, which parliament attributes to fluctuations in world prices, geopolitical risks, and currency factors.
What the law provides for
This refers to the law “On Minimum Reserves of Oil and Petroleum Products,” which obliges importers and producers to form and maintain reserves.
Key provisions:
- creation of strategic reserves on the territory of Ukraine;
- the possibility of storing up to 25% of reserves in EU countries;
- use of reserves only in crisis situations — not for commercial interventions;
- phased entry into force.
The parliament emphasizes that the regulatory mechanism has already been launched, but the physical accumulation of resources takes time — both to create the infrastructure and to form the reserves themselves.
Is this related to the current price increase?
The relevant committee on energy and housing and communal services states that there is currently no fuel shortage and that the strategic reserve is not yet being used to influence the market.
Thus, the current price situation is not related to the use of reserves, as they are still being formed.
According to market data, from March 2 to March 3, light petroleum products rose in price by an average of about 2 UAH/liter, exceeding 65 UAH/liter. Liquefied gas rose in price to 39.05 UAH/liter.
Why prices are rising
Ukraine is heavily dependent on imports of petroleum products, so domestic prices react quickly to global factors.
Serhiy Kuyun, director of the A-95 consulting group , noted that the current price surge is fueled not by a shortage, but by panic related to news of war in Iran and possible supply disruptions.
Danylo Getmantsev, head of the parliament’s finance committee, called on market participants not to exploit panic to make excessive profits.
What mechanisms are currently in place
Until the minimum stock system is fully launched, the state is using other instruments:
- monitoring prices, margins, and supply volumes;
- coordination with traders on import stability and logistics;
- monitoring compliance with competition law;
- combating possible collusion in the market.
The Council emphasizes that once the reserve is formed, it should become an additional stabilizing factor for the energy market.
