Prices like in Poland: Parliament names reasons for rapid rise in fuel prices in Ukraine
10 March 14:03
The sharp rise in fuel prices in Ukraine to the level seen in Poland—around 73 hryvnia per liter—is currently the result of a number of objective factors, but a significant jump in prices is not expected.
According to RBC-Ukraine, this was stated by Andriy Gerus, chairman of the parliamentary committee on energy and housing and communal services, during a telethon, as reported by Komersant.
Gerus was asked to explain why the price of gasoline in Ukraine has almost equaled the Polish price, which is about 73 hryvnia.
Logistics and fuel supply
According to him, one of the main reasons for the rise in fuel prices is supply logistics. Today, Ukraine receives most of its petroleum products from Europe, which means that they pass through several countries or arrive through European ports and are then delivered to Ukraine.
Gerus also said that Ukraine currently has no supplies from the East, with all supplies coming from the West.
“If we look at Europe from West to East, we are at the end of this logistics chain, so the resource itself is usually not cheaper than in Europe, but even slightly more expensive,” he explained.
The impact of currencies and excise taxes
In addition, a large part of the fuel price consists of the cost of oil, excise taxes, and VAT, and excise taxes were increased on January 1. Added to this is the impact of the dollar and euro exchange rates, as Ukraine imports most of its resources for foreign currency.
“The dollar has risen significantly against the hryvnia, excise taxes are tied to the euro, and the euro has also risen by 2 hryvnia over the last three months. Therefore, there is an objective problem,” the MP noted.
Lack of strategic reserves
Gerus also drew attention to the lack of strategic reserves of petroleum products due to the shelling of oil depots.
“Everything is working on the fly, there are no reserves of cheaper resources, so any price change in Europe is quickly converted into a price change in Ukraine,” he explained.
At the same time, the state-owned company Ukrnafta, where prices for diesel and gasoline are slightly lower, is helping to partially restrain prices.
Gerus added that work on building strategic reserves will make it possible to better weather price shocks in the future and ensure market stability.
According to local media reports, fuel prices in Poland are expected to rise between March 9 and 15:
- Pb98 6.96-7.10 zlotys per liter, which is 82.41-84.06 UAH/liter.
- Pb95 6.15-6.30 PLN per liter, which is 72.82-74.59 UAH/liter.
- ON (diesel) PLN 7.12-7.29 per liter, which is UAH 84.30-86.31 per liter.
- LPG (gas) costs PLN 2.97–3.10 per liter, which is UAH 35.16–36.70 per liter.
Consequences of the conflict in the Middle East
On March 9, global oil prices exceeded $100 per barrel for the first time since Russia’s full-scale invasion of Ukraine in 2022.
The increase occurred against the backdrop of US and Israeli military operations against Iran and Tehran’s blockade of the Strait of Hormuz, through which a significant portion of the world’s oil supplies pass. This led to an increase in gasoline prices.
