Ukraine's fuel adds 5%, further growth is unlikely, analyst says

Ukraine Fuel Prices Jump 5% Amid Gulf Oil Supply Issues, Further Increase Unlikely

Recent Surge in Ukrainian Fuel Prices and Market Reactions

Background: Ukraine’s Dependence on Fuel Imports

KYIV, March 3 (Reuters) - Fuel prices in Ukraine, which is dependent on imports, have risen by about 5% over the past two days on news of problems with oil supplies from the Gulf, but are unlikely to continue rising, a top analyst at A-95 consultancy said on Tuesday.

Global Oil Supply Routes and Their Significance

The strait is the world's most vital oil export route, which connects the biggest Gulf oil producers, such as Saudi Arabia, Iran, Iraq and the United Arab Emirates, with the Gulf of Oman and the Arabian Sea.

Market Response and Analyst Insights

"Traders were not prepared, and the price increase is their attempt to prevent a possible rush on fuel," Serhiy Kuyun told Reuters.

Future Price Outlook

According to him, if demand remains limited, retail market prices will soon return to pre-crisis levels.

Import Trends and Domestic Challenges

A-95 said last month that Ukraine boosted petrol imports by 70% in January compared to January 2025 due to a lack of domestic production and growing demand from businesses and the population forced to use generators amid widespread power outages following Russian attacks on power facilities.

(Reporting by Pavel Polityuk, Editing by Louise Heavens)