The global diesel market has set a new record: what will happen to fuel prices in Ukraine?
4 April 09:15
A new record high for diesel fuel prices has been set on global energy markets. Trading on the ICE exchange in London closed at $1,521 per ton, which is $155 higher than the previous day’s price. In southern Europe, prices (CIF) reached $1,617 per ton, and overall, they more than doubled in March.
This was reported by Sergey Kuyun, director of the A-95 Consulting Group, according to "Komersant Ukrainian".
Impact on the Ukrainian market
Under current market conditions, the cost of fuel at the Ukrainian border is estimated at 95 UAH/liter. Taking into account logistics costs and gas station markups, the retail price could reach 100 UAH/liter. As of early April, wholesale fuel shipments are already trading in the range of 90–93.5 UAH/liter.
“Yes, it won’t be 100 tomorrow or in a week, but the trend is clear and it’s spreading across Europe; in some places, gas stations are running out of fuel,” notes Kuyun.
He compares the current situation to the fuel crisis of the 1970s: “This is a record for the last… I don’t even know if prices have ever been this high… They say something similar happened in the 1970s.”
Fuel Availability in Ukraine
Kuyun believes that despite rising prices, there is currently no risk of a petroleum products shortage in Ukraine. In March, imports reached a record high for 2021 at 577,000 tons, creating significant reserves for April. Additionally, retail chains have already contracted the necessary volumes.
Despite the difficult situation in Asian and European countries, where there are long lines at gas stations, Ukrainian networks are well-supplied.
“As for gasoline, there are more than a month’s worth of reserves (in addition to current supplies). So, there will be fuel. The question of price remains open,” the expert concluded.
Earlier it was reported that following Russia’s full-scale invasion, the war in the Middle East has created a new reality for Ukraine: a sharp rise in prices and the risk of fuel shortages.
