Sunflower oil prices may rise by up to 10%, economists say
15 January 14:28
Russian strikes on oil infrastructure in the Odesa region will not lead to a shortage of sunflower oil in Ukraine, but may cause limited price increases. This was stated by economists in comments to the publication "Komersant Ukrainian", according to the article “Russia strikes oil infrastructure: why there will be no shortage and what will keep prices down.”
According to economist Andriy Novak, the consequences of the attacks are felt primarily by individual enterprises that have suffered losses of products, warehouses, and vehicles. At the same time, these losses are not critical for the domestic market of Ukraine.
“For the Ukrainian market, this will not affect the range of these products, their quantity, or their price,” Novak said, adding that the Ukrainian oil market remains oversaturated.
Economist Oleg Pendzin pointed out that Ukraine produces about 5 million tons of oil per year, while domestic consumption is about 500,000 tons. Thus, more than 90% of production is exported, which makes a shortage on the domestic market impossible.
At the same time, Pendzin does not rule out a moderate increase in prices.
“If there is growth, it will not exceed 10% in a month or a month and a half. So, there will definitely be no shortage,” the expert emphasized.
According to him, the key factor restraining price increases is the purchasing power of the population, as well as the wide selection of brands and trademarks on the market.
Experts conclude that the strikes on the oil industry’s infrastructure have caused local economic damage, but do not currently pose a threat to the domestic market and will not cause a sharp jump in prices.
