More than 150 gas stations have burned down in Ukraine over the past two months: why there is no fuel shortage and prices are falling
27 June 05:52
Over the past two months, more than 150 gas stations in Ukraine have been destroyed by Russian attacks. In addition, oil depots and other fuel infrastructure facilities come under attack almost every week. Despite the significant destruction, the country has not faced a large-scale shortage of gasoline, diesel fuel, or autogas. This was reported by Andriy Pyvovarskyi, CEO of the WOG network and former Minister of Infrastructure, according to "Komersant Ukrainian"
More than 150 gas stations have burned down in two months
According to Andriy Pyvovarskyi, more than 150 gas stations have burned down in Ukraine over the past two months.
Russian troops are also regularly attacking oil depots, fuel storage facilities, railway infrastructure, industrial enterprises, logistics centers, tanker trucks, and other fuel market facilities.
Due to these attacks, some gas stations are temporarily suspending operations, and companies are forced to repair equipment, change supply routes, and relocate stockpiles.
At the same time, the scale of the network allows for the redistribution of fuel between regions and quickly compensates for the loss of individual facilities.
Why There Is No Fuel Shortage in Ukraine
After the start of the full-scale Russian invasion, the Ukrainian fuel market underwent a significant restructuring.
Until 2022, a significant portion of gasoline and diesel fuel came from Russia and Belarus or was supplied via a limited number of major routes.
After losing these supply routes, companies established supplies from European countries.
Today, fuel is delivered to Ukraine:
- by road tankers;
- by rail;
- through Danube ports;
- from oil refineries in EU countries;
- through dozens of different suppliers and traders.
As a result, the destruction of a single storage facility, gas station, or logistics route does not halt supplies to the entire market.
Where Ukraine Buys Fuel
Ukraine imports the bulk of its petroleum products from European Union countries.
Fuel can also be shipped by sea to European terminals, after which it is transported to Ukraine by rail or tanker trucks.
Companies work with several suppliers at once so that, in the event of problems on one route, they can quickly redirect the flow of supplies.
Why gas station prices don’t drop immediately after oil prices do
Pivovarsky emphasized that gas stations do not purchase crude oil, but rather refined petroleum products—gasoline, diesel fuel, and liquefied petroleum gas.
The price of oil is just one of the factors that influence the final cost per liter of fuel.
Gasoline and diesel prices also depend on:
- the utilization rate of oil refineries;
- global demand for petroleum products;
- fuel stocks in Europe;
- seasonal consumption;
- transportation costs;
- cargo insurance;
- the condition of ports and railways;
- war risks;
- exchange rates;
- taxes and excise duties.
Therefore, a drop in oil prices does not mean that prices at Ukrainian gas stations will fall by the same amount the very next day.
How the Dollar Exchange Rate Affects Fuel Prices
Ukraine imports a significant portion of its gasoline, diesel, and autogas, so payments for these resources are made in foreign currency.
According to Pyvovarskyi, when the situation in the Middle East first began to escalate, the dollar was worth about 43.20 UAH, and later approached 45 UAH.
The weakening of the hryvnia makes imports more expensive even when the price of petroleum products in dollars or euros falls.
For example, if a European supplier lowers the price of diesel but the dollar simultaneously appreciates, part of the benefit for the Ukrainian importer may be lost due to the exchange rate difference.
Stability in the fuel market comes at a cost
A diversified supply system helps prevent shortages but increases companies’ costs.
The cost of fuel includes:
- transportation by various modes of transport;
- storage of reserves;
- warehouse rental;
- insurance;
- security;
- repair of damaged gas stations;
- purchasing generators;
- maintaining alternative routes;
- reserving logistics capacity.
Fuel networks are essentially paying for the ability to continue operating even after attacks on individual facilities.
This is precisely why the Ukrainian market can remain stable, but fuel prices do not always drop immediately after a decline in global oil prices.
Fuel prices have already begun to fall
Despite infrastructure losses and logistical challenges, prices at Ukrainian gas stations have gone down.
As of June 26, the average price of fuel in Ukraine was:
- A-95 gasoline — 78.21 UAH per liter;
- A-95 gasoline — 74.59 UAH per liter;
- A-92 gasoline — 68.85 UAH per liter;
- diesel fuel — 76.89 UAH per liter;
- autogas — 41.34 UAH per liter.
Over the past 24 hours, diesel prices fell by an average of 28 kopecks, autogas by 30 kopecks, and A-95 gasoline by 4 kopecks.
Prices may vary significantly depending on the retail chain and region.
How much has diesel prices dropped?
The most noticeable decline is in the diesel fuel segment.
According to the head of WOG, at its peak, the average price of diesel was approaching 92 UAH per liter.
As of June 26, it had dropped to 76.89 UAH per liter.
Thus, compared to the peak price, diesel has become cheaper by approximately 15 UAH per liter, or roughly 16%.
For a driver filling a 50-liter tank, the difference amounts to about 750 UAH.
How the price of diesel has changed over the past two months
At the end of April, the average price of diesel fuel exceeded 88 UAH per liter.
In May, the price remained within the range of 86–89 UAH for an extended period.
In early June, diesel averaged over 85 UAH, but in the second half of the month, a rapid decline began:
- June 12 — about 82.76 UAH;
- June 18 — about 80.07 UAH;
- June 22 — about 78.49 UAH;
- June 25 — about 77.17 UAH;
- June 26 — about 76.89 UAH.
Thus, in June alone, the average price of diesel fuel fell by more than 8 UAH per liter.
How much does fuel cost at major chains?
Prices at different gas stations vary depending on product quality, logistics, region, and the company’s pricing policy.
As of June 26, regular A-95 gasoline at major chains cost approximately:
- WOG — 78.90 UAH per liter;
- OKKO — 78.90 UAH;
- SOCAR — about 77.90 UAH;
- UPG — 73.90 UAH;
- “Ukrnafta” — 73.90 UAH;
- AMIC — about 73.73 UAH;
- “BRSM-Nafta” — about 70.58 UAH.
Depending on the chain, diesel fuel was sold for approximately 72 to 81 UAH per liter.
The actual price may be lower due to loyalty programs, promotions, and personal discounts.
Will prices continue to fall?
Andriy Pyvovarskyi forecasts a further decline in fuel prices in Ukraine.
This could be driven by:
- lower prices for wholesale shipments;
- a decline in global oil prices;
- sufficient stocks held by operators;
- high competition among retail chains;
- stable supplies from Europe;
- a decline in demand following the price peak.
At the same time, the situation may change due to new attacks, exchange rate fluctuations, or tensions in the global market.
Therefore, further price reductions will not necessarily be uniform across all networks.
How Ukraine Is Preparing for Winter
The fuel market is already preparing for the fall and winter season.
According to Pyvovarskyi, companies are:
- are building up additional reserves;
- signing supply contracts;
- reserving transportation capacity;
- reserving warehouses and terminals;
- preparing alternative routes;
- ensure the autonomous operation of gas stations.
In winter, a stable fuel supply is particularly important due to the operation of generators, transportation, public utilities, and critical infrastructure.
