Price Reduction at Gas Stations: Predictions for Gasoline and Diesel Prices.

Since mid-March, gas station networks in Ukraine have started to reduce prices for gasoline, diesel fuel, and auto gas. However, there are some risks that hinder further price reductions and affect sales declines.

'Oil prices have fallen; they (gas station networks) should reduce prices, but they fear that something else may happen, and retail businesses will suffer significantly. Prices can be adjusted, but there's no need to rush,' says Alexander Sirenko, an analyst at the consulting company 'Naftorynok.'

According to Alexander Sirenko, the average prices for gasoline and diesel fuel in gas station networks in Ukraine have decreased by 58 kopecks - 1 hryvnia per liter to 55.71 hryvnias per liter for A-95 gasoline and 54.06 hryvnias per liter for diesel fuel. The price for auto gas has dropped by 28 kopecks - to 36.32 hryvnias per liter.

Futures prices for oil have decreased by 12% - from $82 to $72 per barrel from January 15 to March 20, 2025.

Alexander Sirenko notes that with a decrease in oil prices by 10% or more, the price of fuel could drop by 5 hryvnias per liter.

The analyst also indicates that the difference between wholesale and retail prices for diesel fuel is 8.6 hryvnias per liter, which indicates the possibility of further price reductions at gas stations.

However, price reductions are limited by risks in the fuel business, particularly declining sales volumes due to a decreasing population and its mobility. An additional risk is the increase in excise duties on petroleum products and changes in tax legislation.

Such risks have led to promotions and price reductions during weekends to attract customers.