Gasoline prices decrease despite new bioethanol mandate: Market expert explains current trends

On May 1, Ukraine implemented a new regulation requiring that at least 5% bioethanol be blended into almost all grades of gasoline. Despite concerns that this mandate would drive up fuel costs, prices have actually decreased.

Fuel market expert Serhii Kuiun addressed the situation during a briefing at the Media Center Ukraine.

“As far as the market situation is concerned, not only didn’t the price of gasoline rise after May 1 – some retail chains even lowered the price by 50 kopiyok to 1 hryvnia per liter. This confirms that there were no real reasons for a price increase”.

However, Kuiun highlighted another factor that could affect prices in the near future.

“Unfortunately, we’re now seeing rising crude oil prices. The bottom was at $60 a barrel, but yesterday it reached $66. So that’s a 10% increase, and accordingly wholesale prices have started to slowly creep up,” Serhii Kuiun remarked.

However, he noted that the market remains stable for now and no significant price increases are expected in the next 2-3 weeks.

Read more: https://mediacenter.org.ua/news