Loss of domestic production due to Russian attacks and other factors: Expert explains why fuel prices are rising

This was announced by Director of the A95 Consulting Group Serhii Kuiun on Ukrinform's Ye Rozmova program.

In particular, among the internal factors contributing to the rise in fuel prices, the expert cited the gradual increase in excise taxes starting in September 2024 and fluctuations in the hryvnia exchange rate.

"During this period [since September 2024], the fuel tax has increased by 6-7 hryvnia. That is, hypothetically speaking, if the state had not done this, the price today would be 7 hryvnia lower. And if there had been no devaluation of the hryvnia, it would have been not 7 UAH, but 9 UAH lower," Kuiun explained.

He stressed that due to the destruction of the Kremenchuk Oil Refinery as a result of massive Russian attacks, Ukraine has lost its own fuel production and is now a net importer. At the same time, fuel comes from various countries, including the US, Qatar, and Spain.

Kuiun noted that, due to record fuel imports in December, the increase in excise taxes did not immediately affect gas station prices at the beginning of the year. However, since the beginning of January, oil prices on world markets have risen, and the hryvnia has devalued. According to the expert's estimate, the cost of fuel has increased by 4 hryvnia 20 kopiykas.

“Therefore, the price [at gas stations] has definitely increased. From 4 hryvnia, it has already exceeded 2 hryvnia, and this allows us to predict that the price will continue to adjust, more precisely, to increase. I think it will increase by another hryvnia or one and a half,” Kuiun predicts.

As reported, on Tuesday, February 10, the average price of A-95 gasoline rose by 2 kopiykas to 60.89 UAH/liter, and diesel fuel increased by 5 kopiykas to 60.55 UAH/liter.