The expert explained how the ban on fuel from Russia will change prices at gas stations
On May 9, 2023, the Cabinet of Ministers banned the import of fuel of uncertain origin in order to block the possibility of Russian oil products entering Ukraine.
The ban of the Cabinet of Ministers on the import of fuel of Russian origin will “block the road” for liquefied gas from the Russian Federation, but will have a minimal impact on prices at Ukrainian gas stations.
Artem Kuyun, an expert of the A-95 consulting group, wrote about this on his Facebook page, noting that at customs the origin is confirmed by a single document – a certificate of origin. There are several internationally approved forms, but their essence is the same – to show where the fuel comes from, including its components, if it is a mixture.
“The ban on the import of fuel of Russian origin is an outstanding event, the TOP news on the oil products market in recent months… How will the government’s move affect the market? Among imported oil products, liquefied gas was the most questioned about the origin. Most likely, the road for parties Russian product with murky documents will now be closed. Suspicious gas was on average 150 euros cheaper than purely European. This is about 3.5 UAH/l.
The expert suggests that the price of autogas may increase by 1 hryvnia per liter, but more because of delays at the border than because of the “attack” on the Russian resource.
“The only thing that can be guaranteed is that growth will be as low as possible, as competition in the retail market remains very intense and no one will let a neighbor earn an extra penny,” he wrote.
At the same time, the expert believes that the situation will not change with respect to diesel fuel either in terms of prices or the actual presence of Russian fuel in Ukraine.
“The enclave of Russian diesel is the Black and Mediterranean Seas. It is from there that diesel fuel goes to Ukraine, by the way. And if there are at least questions about certificates from the EU countries, then there are a lot of questions about certificates from the Egyptian, Turkish and Moroccan ones,” Kuyun said.
Import of Russian fuel to Ukraine
On May 9, 2023, the Cabinet of Ministers banned the import of fuel of uncertain origin in order to block the possibility of Russian oil products entering Ukraine.
The ban will apply to the following types of goods:
- oil and oil products obtained from bituminous rocks (minerals), crude;
- oil and oil products obtained from bituminous rocks (minerals), except for crude ones; products containing 70 wt.% or more of oil or oil products derived from bituminous rocks (minerals), waste oil products;
- petroleum gases and other hydrocarbons in the gaseous state;
- alternative motor fuel, not specified elsewhere;
- biodiesel and mixtures thereof, not containing or containing less than 70 wt.% oil or oil products derived from bituminous rocks.
Despite numerous sanctions, bans and embargoes, fuel of Russian origin, oil, oil products got into the EU countries, Turkey and other countries, and from there to the Ukrainian market, as a resource of uncertain origin.
The Ministry of Energy believes that from now on, fuel from the Russian Federation will not be able to enter the Ukrainian market. This is another significant step to protect Ukrainian national interests and sovereignty.