Fuel market: expert points out factors for possible price reduction

According to the forecasts of global oil trading companies, the price of oil will continue to fall, which in turn will lead to lower fuel prices.

“Forecasts are very positive. The reason why there wasn’t a price increase (after the introduction of the excise tax – ed.) is that the increase in the price of gasoline/diesel was small – 1.5-2 hryvnia, which is just a typical market fluctuation. The second important factor is that the world market has been in a state of contraction. So, one price-increasing factor was offset by another factor – the decrease in purchase prices. What we are seeing now, and indeed what the global oil trading companies are predicting, is that the price of oil will continue to fall. So, given the current level of competition, I think we could still see a decline in gasoline/diesel prices. There is a lot of fuel in the market, the dealers have brought a lot of it ahead of the excise tax increase, and this fuel will put additional pressure on the market throughout September. So, if things go as predicted by major oil companies, we may see a decline,” Serhiy Kuyun explained.

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