The price of gas: why the more expensive fuel, who is to blame and what will happen next

On the market of car gas in Ukraine still continues to panic. The price tags are changing every day. If a month ago, the fuel cost of 10.8-11 UAH per liter, in the last days of autogas rose to 16.5 UAH per liter.

There are different assumptions – experts point to the economic factors and policies seek collusion in the market. This writes Deutsche Welle.

The Ministry of economic development and trade of Ukraine the main reason for the rise in price of LPG is called its deficit. Agree with this, and the reviewers.

“There can be other reasons than the market. The excitement provoked in particular by the holidays. But prices are beginning to return to the economically determined direction”, – said the expert fuel “Consulting group A-95” Artem Kuyun.

The business experts believe that, in the absence of destabilizing factors, such as political, prices will soon return to the previous level.

Wholesale prices peaked, so soon we can expect the fall in the value. This convinced the Chairman of the company GT Group Vladislav Kolodyazhniy, reports “Interfax-Ukraine”.

“We are looking at the end of September – beginning of October. Then two vectors, reduce consumption and increase supply to meet market stabiliziruemost” – he said and pointed out that at a constant price of oil is a real return to the level of last year’s prices.

See also:

Poroshenko said about the need to promote the production of liquefied gas in Ukraine

Experts also point out as one of the causes of price hike of LPG activities of the illegal market, particularly in retail trade. Experts explain that the gas imported to Ukraine legally, but then resold to wholesalers at “grey schemes” for cash and further motorists, often opaque.

“In parallel, the supply of money in the konvertatsionny centers” – says Kuiun and adds that tied the whole scheme “not quite legal” operations.

The share of black market is estimated at not less than 30%.

Video settings Ukraine rose a record of gas for the car

Snidanok 1+1

22 Aug, 08:38

Partial blame for the price hike lays in the shadow of traders and the expert of the Kiev scientific-technical center “Psyche” Sergey Ryabtsev. He admits that it is illegal, the participants on the background of significant demand for liquefied gas was sold very cheaply. Reducing the supply of, respectively, provoked a sharp surge in prices.

Why not enough fuel, Kuyun said that was all the market reasons to provide for the deficit, however, the attempts of Ukrainian traders to replenish stocks failed. Market participants noted that the fuel shortage is observed in the markets the key sources of imports to Ukraine – in particular, Belarus, Kazakhstan and Russia, where prices are also rising.

Gas from abroad has been important, because the local production, according to consulting company UPECO, covers only about 20% of demand. There are problems with transport infrastructure and storage. An expert in the field of energy Gennady Ryabtsev explains that “Ukrzaliznytsya” is one of the most important carriers for the fuel market, in a timely manner, failed to provide the required number of tanks to transport it.

Quickly to increase imports from Europe, for example, from Romania, is difficult because of the need to change the tanks of the pair of wheels to move from a narrow European rails on the wide Ukrainian.

Kuyun also indicates that “Ukrzaliznytsya” there are other problems: for example, fuel for locomotives, which carry out a cargo transportation. He said that the tenders for purchase of diesel was canceled because of barbi suppliers. The specialist admits that the state monopoly is too favorable to the firms with the orbits of the company “trade Commodity”, which became active on the market in the past year, and now supplies petroleum products to the defense Ministry and Ukrzaliznytsia. Investigative journalism associated with this company close to President of Ukraine with businessmen-politicians Alexander Granovsky and Igor Kononenko. Not without politics? On monopolistic collusion on the social network Facebook wrote the Deputy Pro-presidential faction, ex-journalist Mustafa Nayem.

“At the beginning of the year the market of liquefied gas with the tacit consent of the government and the presidential administration, SBU killed the competition by indentation of a number of traders”, – he said.

Later on the possibility of anti-competitive agreements, said Ukrainian Prime Minister Volodymyr Groysman and Minister of economic development and trade Stepan Kubiv has instructed relevant agencies to carry out appropriate checks.

See also:

The economy Ministry found an explanation for the rapid rise in price of LPG

Another former journalist and MP Sergei Leshchenko says that the SBU has contributed to the monopolization of the market. He calls the trader Proton Energy, the share of which, according to him, thanks to the actions of intelligence agencies has increased to 40%. Version of MP, because of the requirements of the sanctions against traders of liquefied natural gas for three and a half months has been blocked the work of this business, and the importers suffered heavy losses.

However, experts are convinced that on political factors in the rise in price of gas. On the contrary, emphasizes Kuyun, politicians and officials are trying to use it for their own purposes. He calls the statements about the war in the market and calls for protests “manipulation and populism.”

One of the complications may be the licensing of fuel transportation. Under the new requirements, which officially come into effect on 1 September, a permit from the state should receive not only the carrier of the fuel, but the company-sender, recipient company. In General, it is accepted practice in Europe, however, experts admit that in Ukraine it will become a fertile ground for corruption.

“About 100 thousand hryvnias is one license. For the company these should be two or three. And it can be a tool of influence, since the license can be revoked and a new one may need two to three months”, – says Kuiun notes that this could be the leverage for traders.

Not enough control over the regulator, he said. Excessive regulation, he adds, it is not conducive to business development.

“Who is carried, he will carry, only now with a license,” he concludes and adds that the fuel black market in Ukraine new steps the government will not change.

Meanwhile, the President of Ukraine Petro Poroshenko assured that the price of gas will decline in the second half of September.

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