Expert outlines reasons behind diesel fuel price increase
He described the current pricing situation as unusual, noting that global oil prices remain stable or are even declining. However, in the hryvnia equivalent, the purchase price of diesel fuel has risen by UAH 6 per liter over the past month.
“First of all, everyone is looking to replace Turkish and Indian petroleum products, which will soon be banned under EU sanctions. There’s a rush to stockpile ‘non-toxic fuel.’ Right now, demand for diesel is high—and that’s the main reason,” Kuiun said.
In addition, Ukraine is facing complex supply challenges. According to Kuiun, Ukrainian military strikes on Russian refineries and ports are already having an impact, leading to a decline in Russian diesel exports to the global market. He explained that Turkey had previously been able to export more of its own fuel by using Russian imports to meet domestic demand.
At the same time, sanctions have halted operations at Gazprom’s refinery in Serbia. The country has turned to Romania for fuel—previously a major source of diesel imports for Ukraine. Refineries in Hungary and Slovakia have been shut down due to sabotage, and Lithuania’s Orlen plant was offline in October for scheduled maintenance.
“As a result, diesel supply in October was 15% lower than in the same period last year,” Kuiun noted.
He added that the situation is expected to improve: Ukraine’s energy customs service has lifted enhanced controls at the Romanian border, which should speed up fuel deliveries. Lithuania’s refinery has resumed operations, and Hungary may influence the market if it receives a sanctions' exemption allowing it to purchase Russian oil.
Still, challenges remain. Due to U.S. sanctions, the future of Lukoil’s refineries in Bulgaria and Romania remains uncertain.
As previously reported, on Monday, November 10, the average price of A-95 gasoline rose by UAH 0.05 to UAH 58.44 per liter, while diesel increased by UAH 0.81 to UAH 57.32 per liter.
Photo credit: Ukrnafta
