Number of gas station networks in Ukraine suspend premium petrol, diesel sales

A number of gas station chains in Ukraine have suspended the sales of "premium" brands of petrol and diesel fuel.

The operators say the move is a response to the Cabinet's decision to introduce state regulation of fuel prices, setting the camp on trade markup.

The OKKO network reported that the Cabinet's move made the sale of "premium" fuels unprofitable.

"From May 15, in connection with the introduction of state regulation of fuel prices, OKKO gas stations are suspending the sale of PULLS 95 and PULLS Diesel. This is due to the fact that the sale of fuel of these grades at the price set by the Cabinet of Ministers for May is unprofitable for the network," the statement says.

The WOG network has made a similar move, also linking it with the introduction of state regulation of fuel prices.

"We are forced to cease the sales of premium 95 Mustang fuel and DP + Mustang," the statement said.

The restrictions are not set to apply to A-95 gasoline and Euro-5 diesel fuel.

The Focus outlet says a similar situation with premium fuels is being observed at the KLO network. "According to the gas stations' staff, the sale of the said types of fuel has been suspended at all of the network's gas stations," the report reads.

State regulation of fuel prices: Background

• Due to the unstable situation with the import of light petroleum products from Belarus and Russia, the Antimonopoly Committee initially warned market operators against unreasonable price hikes before the Cabinet of Ministers took over.
• The main reason behind climbing prices for gasoline is the rising global prices for oil and petroleum products. Since early April, global oil prices have risen from $62 per barrel to $69, while petroleum products' prices – by 7-11%.
• On May 11, the government obliged gas station networks to warn about a scheduled increase in prices by 1% or more 20 days prior.
• On May 12, a government decree came into force, adding petrol brands A-92 and A-95, as well as diesel fuel, to the list of goods with high social significance – along with buckwheat, milk, pasta, and protective face masks.
• On May 14, the government introduced state regulation of petrol and diesel prices pending quarantine. According to the decision, the level of the trade markup to the average price of diesel fuel shall be capped at UAH 7 per liter, and petrol – at UAH 5 per liter.