Darina Lisyuchenko
30 May 2022 16: 45
Headings: World News Society

Poland no longer transfers fuel to Ukraine for free. What is the situation on the fuel market now?

The crisis in the fuel market of Ukraine may last until July.

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Poland no longer transfers fuel to Ukraine for free. What is the situation on the fuel market now?

Poland will no longer supply fuel to Ukraine for free, now you have to pay for it. This was stated by the Minister of Climate and the Environment of the country Anna Moscow in an interview with the publication BusinessAlert.

"At the beginning of the war and after the bombing of the refinery we sent this fuel for free. Currently, these are commercial deliveries from Orlen, requiring large material and technical costs. Usually such supplies are carried out through pipelines, so we had to create new supply channels. We carry them out on an ongoing basis, while maintaining the priority of deliveries to the Polish market”, Moscow said.

She added that "fuel companies in Ukraine are doing well." “Our supply is a response to the crisis, but this sector is well organized, so you do not see market potential in it. Also, we are in the process of merging Orlen and Lotos, so we don't want further expansion announcements to reverse that process. We are in the final stages of approving remedies. The last negotiations with the European Commission have been completed”, the minister added.

Earlier it became known that Ukraine will begin deliveries of gasoline from the state reserve of Poland - 25 tons. This fuel was supposed to cover a quarter of consumption in May.

How long will the fuel crisis in Ukraine last?

The crisis in the fuel market of Ukraine may last until July. This was stated by the director of the A95 Consulting Group during a briefing. Sergey Kuyun.

According to him, now there is a search for resources and the formation of a new market, because Ukraine has lost 100% of the sources of the pre-war supply market, respectively, the whole process starts from scratch.

“Of course, we were looking for the main resources in neighboring countries. Now these destinations cannot cope with the demand that we have created. From Romania, for example, they received a signal that they plan to limit imports for Ukraine in the summer in order to meet their needs. Moldova, which is a transit country, also plans to limit supplies. Most likely, we will have to carry gasoline from afar. Approximately until July, the necessary volumes will continue to be reached. But the government, along with traders, is studying the market, as seasonal demand will be increased in the fall,” Kuyun noted.

The expert explained that after the abolition of state regulation, an economic incentive appeared to supply fuel more actively and the number of fuel supply declarants increased several times. This shows the activation of the market. The situation with gasoline is worse - there are fewer suppliers.

According to him, it is too early to say that Ukraine has reached the planned volumes of deliveries. European plants cover domestic demand and do not have excess volumes of gasoline.

“We cannot import through European ports, because there is diesel logistics, respectively, domestic markets provide their consumers with priority”, Sergey Kuyun said.

The lack of fuel in Ukraine has led to exorbitant prices for gasoline at gas stations. However, experts are sure that this cannot continue for a long time, and prices will soon go down. About it LB.ua fuel market experts said Sergey Kuyun и Gennady Kobal.

In particular, Kobal noted that gasoline prices of 60-70 hryvnia per liter will automatically lead to a noticeable increase in prices for everything related to transportation. He believes that people can buy it to feel safe, but the economy and business will not be able to work in such conditions.

We previously reported that in Hungary, only cars with local numbers will be able to refuel with cheap gasolineand also wrote extensive material on what is happening in the fuel market of Ukraine and analyzed the reasons for what is happening.

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