“The government is trying to shift the blame for a possible fuel shortage this winter onto businesses,” said Serhiy Kuyun
20 August 14:08
The government’s implementation of a minimum stock system for petroleum products (MZNN) amid constant shelling and a severe shortage of funds threatens to destabilize Ukraine’s fuel market on the eve of the most challenging period of the year. This was stated by Serhiy Kuyun, director of the A-95 Consulting Group, as reported by "Komersant Ukrainian".
According to him, the new legal provision requires producers and importers to build reserves in proportion to their shipments: initially at 6%, and later at 9%.
For the market, this means the need to build up a reserve of 600,000 metric tons of diesel fuel, gasoline, and liquefied petroleum gas, with a subsequent increase to 900,000 metric tons—equivalent to the country’s one-month supply.
The expert emphasizes that meeting these requirements under current conditions is impossible due to the lack of secure infrastructure and funding.
He notes that amid constant shelling of fuel infrastructure facilities, the country physically lacks the necessary number of storage tanks, and existing above-ground storage facilities are burning down every day.
At the same time, the cost of the reserve ranges from $1.2 billion to $1.8 billion, not including the mandatory 25% bank guarantee, while banks’ credit lines for suppliers have already been exhausted.
Separately, Kuyun criticizes the government’s position, which shifts all the risks of fuel destruction onto businesses.
According to him, the state is telling importers to build up stockpiles at their own expense, noting that any potential missile strikes will be solely the responsibility of the business owners themselves.
Such conditions will force small importers to cease operations, while the burden on major players will rise to a critical level. Ultimately, this will lead to a decline in competition and a significant increase in fuel prices for the public.
“We have a completely realistic scenario of the fuel market being destabilized on the eve of the toughest period of the year. And we’re not even talking about prices here. After all, the cost of building up reserves will fall on the end consumer—and it will hit them very hard,” the expert emphasized.
According to the latest data, the Cabinet of Ministers has postponed the launch of the MZNN, but Kuyun notes that postponing the deadline alone does not solve the fundamental problems without the construction of underground storage facilities and the simplification of import conditions.
Watch us on YouTube: important topics – without censorship
