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Ukraine expects decrease in diesel sales and no shortage in April - Kuyun

Automobile gas Diesel fuel. Photo: pixabay
Automobile gas Diesel fuel. Photo: pixabay

Director of the A-95 Consulting Group Serhii Kuyun stated that there is no shortage of diesel fuel in Ukraine and will be no shortage in April.

He outlined this on Facebook, Ukrainian News Agency reports.

"Apparently, out of stress, our Cossack traders brought in a record amount of diesel fuel in March for the past 5 years," Kuyun wrote.

According to operational data, stocks are growing and yesterday reached record levels at least since the beginning of the year, and therefore, judging by everything, they will flood the market in April as well.

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So, according to Kuyun, Ukrnafta alone plans to bring 200,000 tons of diesel fuel instead of the traditional 70-100, which is 30% of the market's needs.

Diesel fuel is brought in from Germany, Poland, and Greece.

In fact, the state-owned company itself needs much more fuel - its retail sales of diesel fuel in March doubled due to the obligation to trade without a margin.

He noted that the rest of the large chains also contracted in full.

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But this does not mean that there are no problems.

First, the world is really becoming tight with resources, the main problematic items are diesel fuel and aviation fuel. Large volumes of these products were sent precisely through Hormuz.

Secondly, since the beginning of the war in Iran, diesel prices have doubled - from USD 750 to over USD 1,500 per ton.

This in itself requires twice as much working capital, but foreign suppliers now not only demand 100% prepayment, but also 10-15% on top as a guarantee in case the price increases further by the delivery date (so that no one is caught later).

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Small traders cannot withstand such a load and are forced to reduce import volumes.

"I think not all will get to banks. The same applies to gas stations," the expert commented.

High prices will reduce sales, and without sales any business will collapse.

Many stations are already operating at the limit, because the decline in consumption last year has resumed.

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As Ukrainian News Agency earlier reported, Serhii Kuyun, director of the A-95 Consulting Group, said that a record increase in diesel prices is expected in Ukraine.

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