Fuel prices in Ukraine ‘reflect the situation’ in Iran: Svyrydenko explains when to expect changes
10 April 13:09
Fuel prices in Ukraine will stabilize only after the situation in the Middle East stabilizes, as they are a “reflection of the situation” in the region. Prime Minister Yulia Svyrydenko made this statement in Parliament during question time with the government, according to "Komersant Ukrainian".
The head of government emphasized that there are no coordinated actions leading to price increases there.
“This is a highly competitive market, and the price cap at gas stations is a reflection of the war situation in Iran . Only after the situation in the Middle East stabilizes can we expect prices to stabilize here in Ukraine,” Svyrydenko explained.
The head of government emphasized that it is important to prevent a fuel shortage to ensure supplies for the Armed Forces of Ukraine, the population, and the planting season.
“If we look at the international market and calculate the price at gas stations using the formula, as of today it could have already crossed the 100 mark. That did not happen,” she noted.
According to the prime minister, avoiding a fuel shortage is the primary task assigned to all gas station operators active in the market.
“Ukrnafta, which is currently a state-owned operator, operates on behalf of the government with minimal profitability. And in this way, it serves as a regulator and benchmark for other operators in the market,” she said.
Svyrydenko also noted that restrictions on diesel fuel sales have not been imposed in the country, as this typically leads to panic in the market and stimulates even greater consumption.
Fuel Prices
As a reminder, after Iran blocked the Strait of Hormuz, fuel prices in Ukraine skyrocketed. However, against the backdrop of a truce between the U.S. and Iran, the situation began to gradually improve.
Specifically, on April 8, the Ukrainian fuel market saw the first wave of price drops: the cost of diesel fuel fell by 1 hryvnia (to 92.90–93.00 UAH/liter among market leaders).
The reaction of gas stations was triggered by the collapse of global Brent crude oil prices to $91.7 per barrel following the announcement of a ceasefire between the US and Iran.
Earlier, Svyrydenko stated that she expects gas station owners to offer fair prices to motorists. According to her, the state-owned gas station chain “Ukrnafta” has already responded and begun lowering prices. The Prime Minister noted that prices will continue to fall if the positive trend persists.
