Europe Holding Gasoline Reserves Against Background Of Embargo, Its Supply Also Limited By Seasonal Demand

Serhii Kuiun, director of the A-95 Consulting Group, notes that Europe is holding on to gasoline reserves in anticipation of the consequences of the oil embargo against Russia, while the supply of gasoline on the European market is also limited by the growth of seasonal demand.

He wrote about this on Facebook, Ukrainian News Agency reports.

"The import is not yet sufficient. The most problematic position is gasoline. European port logistics is geared to the import of diesel fuel (tanks, overpasses, pipelines), gasoline is supplied from domestic refineries, the resource is limited due to seasonal growth in demand. Ukrainians are forced to look for gasoline in remote regions, facing new logistical problems. Europeans hold their own reserves in anticipation of the consequences of the oil embargo," Kuiun wrote.

Also, according to him, after the abolition of state regulation of fuel prices, the number of its importers to Ukraine increased significantly.

"The number of importers for each of the items - gasoline, diesel fuel, liquefied gas - doubled during May. The maximum indicator - about 60 subjects import diesel fuel. This is the first result of the abolition of state regulation of prices, more and more medium and small companies follow fuel to Europe. The next stage is an increase in supply volumes," Kuiun said.

As Ukrainian News Agency earlier reported, Energy Minister Herman Halushchenko says that Russia's losses from the oil embargo agreed by the European Union will be equal to a third of its military budget in 2021.

The European Union, as part of the 6th package of sanctions against Russia, decided to impose an oil embargo against Russia, with a temporary exception for pipeline oil supplies.