Price controls on fuel prices to be lifted in Ukraine, says economy minister

18 May, 12:43 PM
Yulia Svyrydenko, First Deputy Prime Minister and Minister of Economy (Photo:Yulia Svyrydenko / Facebook)

Yulia Svyrydenko, First Deputy Prime Minister and Minister of Economy (Photo:Yulia Svyrydenko / Facebook)

Ukraine’s Cabinet of Ministers has decided to lift government price controls on fuel prices, announced Minister of Economy Yulia Svyrydenko on Ukrainian TV on May 17.

“We [the Cabinet of Ministers] had a long discussion with market operators, and following today's meeting, it was agreed that we will suspend price regulation by the state so that market operators can saturate the market with the necessary resources,” stated Svyrydenko. 

“This will enable them to transport all available resources on the European or even non-European market to Ukraine.” 

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Ukrainian fuel prices, and wait times at gas stations, skyrocketed after the destruction of Ukraine’s largest oil refinery by Russian missiles, located in the city of Kremenchuk in central Ukraine. Multiple other supply depots, refineries, and oil and gas facilities have similarly been damaged or destroyed. 

According to Svyrydenko, the government expects that the maximum prices for diesel will not exceed UAH 58 ($1.97), for gasoline — UAH 52 ($1.76) per liter, once controls are lifted. 

“As soon as we feel that market operators are abusing their position, we will impose sanctions on them,” she added. 

“We will monitor the situation on a daily basis”. 

The first deputy PM added that, in her opinion, this decision should reduce queues at gas stations and restore the balance in the market in the coming weeks. 

"[After the full-scale Russian invasion], we lost 97% of our previous logistics channels but have been able to work out new logistics routes during this time,” Svyrydenko explained. 

“We have completely reorganized our logistics to fill the Ukrainian market with fuel, and we are planning large-scale systemic purchases from the national operator to also have leverage in the fuel market.” 

On May 11, Rostyslav Shurma, deputy head of the President's Office, said Ukraine would secure a fuel supply enough for several months, that the Russian invaders would not be able to destroy.

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