Over six months, Ukraine boosts fuel imports by 12 times - economy ministry

By creating favorable conditions for the intensification of fuel imports, Ukraine managed to increase them by 12 times over the past six months.

That’s according to the First Deputy Prime Minister, Minister of Economy of Ukraine Yulia Svyrydenko, Ukrinform reports citing the ministry's press service.

"After the Russian attacks on Ukraine’s fuel infrastructure, we are critically dependent on petroleum import. That is why the Government created conditions for intensifying fuel imports. Priority was given to motor vehicles bringing petroleum products into Ukraine, facilitated clearance of fuel at the borders, compensation for losses due to military actions was ensured, while insurance was introduced of railway and tanker trucks, as well as foreign vessels transporting fuel. Even at the beginning of the full-scale war, the excise tax on petroleum products was abolished, while VAT was reduced from 20 to 7%. The regulation of fuel prices was also suspended to allow operators to replenish their stocks quicker. All this allowed increasing the volume of imports by 12 times," Svyrydenko said.

The ministry notes that Ukraine imported 58,800 tonnes of fuel in March, 380,800 tonnes in May, and 709,500 tonnes in August.

"While in March we imported an average of 827 tonnes of gasoline and 1,400 tonnes of diesel fuel per day, then in August it was 4,200 and 16,900 tonnes, respectively. On the market, we can see the gradual accumulation of reserves of petroleum products due to the constant growth of import volumes. That is why today there is no hyped demand for fuel, no queues at gas stations, and prices don’t tend to grow rapidly. According to consumption forecasts for September-December, Ukraine needs 500,000-550,000 tonnes of fuel each month. We import larger volumes, which allows us to fully cover demand of the Armed Forces, as well as that of emergency and utility services, farmers, and public transport," said Svyrydenko.

The official emphasized the reorientation of fuel imports in the western direction, which took place in the wake of Russian invasion.

"Today, we receive 95% of imported gasoline and 72% of diesel fuel from EU countries. Supply leaders are Romania, Lithuania, Slovakia, Greece, Bulgaria, and Poland. Therefore, quite quickly we were able to radically change the vector of petroleum imports in such a way as to receive them in sufficient volumes to cover all our needs," Svyrydenko said.

As reported, one of the consequences of Russian aggression was the fuel crisis. Before the war, a significant part of the country's needs for gasoline and diesel was covered by supplies from Russia and Belarus. In 2021, 62% of diesel and 50% of gasoline came from these two countries. Another 10% was imported from Lithuania and transported by sea. Now these routes are lost due to hostilities.

In addition, as a result of Russian attacks, more than 20 oil depots and the largest Kremenchuh Refinery in Ukraine were either destroyed or damaged.