Jump in gasoline and diesel prices: Pavlo Kyrylenko said whether the AMCU detected violations
Changes in fuel costs have an almost instantaneous impact on everyday economic life, as gasoline and diesel prices Fuel prices affect not only motorists’ expenses, but also logistics, production and the final cost of goods. Any sharp fluctuations in the petroleum products market arouse significant public interest and become the subject of scrutiny by state institutions, which must determine whether they were caused by objective economic factors or the actions of market participants. The March price increase at Ukrainian gas stations was one of those cases when the rapid increase in fuel costs forced the authorities to seek official explanations and inspections.
How the fuel price increase began
The Chairman of the Antimonopoly Committee of Ukraine, Pavlo Kyrylenko reported that the first signals of a change in the price situation on the market appeared at the end of February. It was from February 28, according to him, that the cost of petroleum products began to increase, which was gradually reflected in the prices of Ukrainian gas stations.
Kyrilenko drew attention to the sharp increase in demand that preceded this process. According to market operators, already on February 27, the volume of purchases of petroleum products increased significantly: the purchase of A-95 gasoline jumped by approximately 40–70 percent, while purchases of diesel fuel demonstrated even more noticeable dynamics – from 60 to 140 percent. Such a sharp increase in demand created additional pressure on the market and became one of the factors that influenced the formation of new prices.
The influence of the European market and supply restrictions
According to Kyrylenko, the situation in Ukraine was also significantly influenced by the processes taking place on the European fuel market. Suppliers from the European Union countries partially reduced the volume of supply for external buyers, as they were forced to direct resources to fill their own domestic markets.
As a result, Ukrainian importers faced a decrease in available fuel volumes, which, in conditions of increasing demand, only increased tension in the market. At the same time, Kyrylenko also drew attention to the time gap in price changes between Europe and Ukraine. According to him, “as of February 23, growth in Europe reached 10.5%, while this level of increase in prices at gas stations in our country was experienced only on March 4, that is, 14 days later.”
This interval, according to the chairman of the committee, indicates that the domestic market reacted to external price changes not instantly, but with a delay.
The market’s dependence on imports after the processing stop
Kyrylenko paid special attention to the structural features of the Ukrainian fuel market, which affect its vulnerability to external factors. After the shutdown of the only oil refinery in Ukraine last year, the country actually found itself in a situation where the majority of light oil products come from abroad.
Such dependence on imports means that domestic prices are largely influenced by international quotations, availability of supplies, and transportation costs. Any changes in these components — from fluctuations in the purchase price to the complexity of logistics — quickly affect the cost of fuel for end consumers.
Logistics as an important factor in price formation
Among the reasons for the price increase, the head of the Antimonopoly Committee also named the increase in the cost of logistics services, which are an integral part of fuel supplies to Ukraine. According to him, the conditions for transporting and delivering petroleum products in Ukraine are significantly different from those in the European Union.
Due to differences in transport infrastructure, supply routes and transportation organization, fuel logistics in Ukraine requires higher costs and more complex operations. Combined with increasing demand and limited supply, this factor also affected the overall price dynamics.
Are there any signs of market disruptions?
Despite the existence of objective economic reasons for the increase in fuel prices, the head of the Antimonopoly Committee does not exclude the possibility that subjective factors could also have influenced price formation. Therefore, the agency continues to study the actions of gas station operators to determine whether the requirements of the law were met when raising prices.
Kirylenko explained that the committee began to respond to the situation almost immediately after the first signals appeared. Already on March 2, that is, a few days after the start of the price increase, the agency sent official requirements to the largest gas station chains and began meetings with market participants.
As part of the inspection, the Antimonopoly Committee turned to fuel networks with a demand to provide detailed information about the reasons for the increase in prices for petroleum products and liquefied gas. Market operators were asked to explain what economic factors led to changes in pricing policy. Subsequently, on March 4, the committee sent additional requirements to market participants to provide information necessary to establish the circumstances that influenced the formation of new prices.
Thus, the inspection as of March 11 has not yet revealed any violations, which looks doubtful. It is currently ongoing, and its goal remains to determine whether the increase in fuel prices occurred solely under the influence of economic processes. Possible reasons include increased demand, a decrease in available fuel volumes, an increase in purchase prices and transportation costs. At the same time, the Antimonopoly Committee is checking whether the price increase was accompanied by actions of individual operators that could violate market competition rules.
