Traders unsure as to future price rises, saying that much depends on Parliament's extension of tax breaks on fuel imports
uel prices continued to grow, rising 5-6 percent between Wednesday-Friday from Hr 2000-2100 to Hr 2150-2300 per ton. Meanwhile, gasoline prices stabilized at beginning of the week levels according to petroleum traders, Ukrainian News reported.
According to the traders, prices for A-76 gasoline leveled off at Hr 2050-2200 per ton, A-92 gasoline – Hr 2200-2400 per ton, and A-95 gasoline – Hr 2400-2450 per ton.
In the opinion of the traders, the rise in diesel fuel prices can be attributed to the shortage the market continues to feel prompted by a rise in demand connected with fall field work, and the sharp jump in petroleum product prices in Europe. Traders say that both imports and domestic production remain low.
Moreover, the market is influenced by the rise in the world price of crude oil, which has resulted in a rise in the prices at which Russian petroleum products are offered for sale to Ukraine.
In addition, the market was influenced by the expected renewal of fuel excise duties of 30 euros per ton.
At the same time, diesel fuel trading volumes fell sharply.
“No one is really anxious to work at a price of Hr 2100-2200 per ton. They are afraid the price will fall again, and no one wants losses,” said Yury Nepomniaschy, the deputy general director of the Atek-95 Company.
“(Prices) jumped sharply, and buyers are not ready for it. Virtually no one is buying,” said the manager of another importing company.
Traders differ in their forecasts on future price changes, noting that they will depend on the introduction of Parliament’s September 21 law extending tax breaks on diesel fuel imports.
“People are waiting. It’s unknown what will happen with the decision passed by Parliament,” said Nepomniaschy.
Part of the traders think that prices have reached their ceiling and will not rise further.
In the traders’ opinion, the stabilization of gasoline prices is related to the market’s greater saturation, compared to the diesel fuel market.
Furthermore, some traders think that gasoline prices will continue to grow slowly.
“There is a shortage of A-76 gasoline,” said the manager of another importing company.
On September 21, Parliament extended privileges on petroleum product imports until the end of this year. In particular, it cancelled excise and customs duties for the import and production of petroleum products, as well as VAT payments after the sale of the fuel.
Parliament also left the excise duty for gasoline imports at 40 euros per ton until January 1, 2001.
The earlier law called for renewing a 30 euros per ton excise duty on diesel fuel and raising gasoline excise from 40 to 60 euros per ton as of October 1.
The rise in fuel prices has also had its expected effect on retail diesel and gas prices.
Retail pries of diesel fuel rose by 15-40 percent in almost all regions of Ukraine during the second ten-day period of September while retail prices of gasoline rose by 3-15 percent, a source in the Economics Ministry said, according to the report.
According to the ministry’s data, between September 10-20, prices for diesel fuel rose 15-40 percent in all regions (except the Donetsk region), to Hr 1.80-2.10 per liter.
A-76 gasoline prices rose 7-15 percent in 24 regions, to Hr 1.75-1.95 per liter.
A-95 gasoline prices rose by 3-10 percent in 24 regions, to Hr 2.00-2.20 per liter.
Retail prices of petroleum products started rising again in early September after remaining stable since early June; prices had risen by 2-20 percent by the first ten days of September with diesel fuel prices jumping sharply by 40-50 percent over the last two weeks.
Prices of A-76 and A-95 gasoline started rising slowly in early June because of shortages as well as because of the reintroduction of the import duty of 15 euros per ton on June 1.
The average price of A-95 gasoline rose by 15-18 percent, while the price of A-76 gasoline rose by 20-25 percent during this period.
