Fuel shortage in Ukraine: E10 standard empties gas stations, prices keep rising

A shortage of gasoline at Ukrainian filling stations is linked to the introduction on July 1 of the new E10 fuel standard, which requires the addition of up to 10% bioethanol.

This was reported on Facebook by Serhiy Kuyun, director of the A-95 group.

According to Kuyun, the shortage has already become real: “out of stock” signs are lighting up in turn at stations belonging to various networks. Producing E10-standard fuel domestically is impossible due to the security situation and what the expert described as an “absurd tax system.” Foreign suppliers, for their part, are unable to quickly scale up production of such fuel. Kuyun called for the new requirement to be scrapped.

At the same time, the expert noted a rise in demand for diesel fuel. In his view, this is driven in part by Russian strikes on ports and vessels, which have caused some grain shipments to be redirected to road transport.

The situation on the diesel market is further complicated by the closure of exports from Russia: Turkey has begun actively purchasing fuel from Greek refineries that previously supplied Ukraine. In addition, on two occasions within two weeks, large tankers were bought out at inflated prices, leading to the cancellation of many orders, including Ukrainian ones.

“Freight and insurance costs are sky-high, up several times over. Whether anyone will want to come here at all after today’s sinking of a vessel carrying corn is an open question. It’s good that at least the rumors about a suspension of supplies from Poland were not confirmed,” — Kuyun wrote.

The expert forecast further price increases at filling stations, hinting at the threat of a large-scale shortage.

“A high price is not the worst thing that can happen. That was proven in 2022,” — he noted.

At the time of publication, diesel in Kyiv costs from around €2 to around €2 per liter, A-95 gasoline — from around €2 to around €2, autogas — around €1 per liter. It was previously reported that diesel fuel at some Ukrainian filling stations had already risen in price to around €2 per liter. Dmytro Leushkin, founder of the Prime Group company group, forecast that by the end of August the cost of fuel would rise by approximately €0 per liter.