Expert explained why diesel prices actually rose

Amidst discussions about whether there are indeed valid reasons for the sharp rise in fuel prices, considering the available resource reserves, fuel market expert Serhiy Kuyun explained what the increase in diesel prices in Ukraine is actually related to. He spoke about this during a briefing at the media center, as reported by UNN.

Details

"The main thing I see as a misunderstanding among society and politicians is how can it be that we still have old stocks at 50, and why are they already raising (the price.ed)? It's very simple: let's imagine that we took and sold everything at 50. But you need to buy at 80. As of today, today's quotation is approximately 1300 dollars - that's 80 hryvnias at the border. And this price will be in Ukraine by the end of the week," emphasized Serhiy Kuyun.

The fuel market expert added that when fuel prices rise, companies can buy smaller volumes.

"That is, in fact, you can only buy half the volume. You used to have a volume at 50, and now you can only buy at 80 for two weeks. The question is: what to do for the other two weeks of the month?" says Serhiy Kuyun.

Serhiy Kuyun also emphasized that prices in Ukraine are rising even slower than on exchanges.

"Still, we are 'running' quite slowly, because the price of diesel fuel increased by almost 30 hryvnias on the exchange in a week, and in our country it increased by 10, by 8 - not by 30. So this is, after all, the influence of those reserves," emphasized the fuel market expert.

And he added: "For example, in Germany, the Netherlands, over the past week, plus 31 euro cents per liter - that's plus 16 hryvnias. These are the rates."

Recall

Oil prices exceeded $100 per barrel on Sunday, crossing that mark for the first time since Russia's invasion of Ukraine in 2022.