Decrease in the number of oil product importers in Ukraine: causes and consequences

The number of oil product importers in Ukraine in September 2024 decreased to 245 companies, which is the lowest figure since June 2022. This marked a 12% decrease compared to August, which caused concern among market analysts. This information was provided by the "A-95" Consulting Group, enkorr informs.

According to experts, in September 2024 there is a decrease in the import of gasoline, diesel fuel and liquefied gas. In particular, gasoline was imported by 9% fewer traders (100 companies), diesel fuel by 10% (156 companies), and liquefied gas by 19% (104 companies). These trends indicate a significant surplus on the oil products market.

The reduction in the number of importers is connected with the surplus of fuel on the market. In August 2024, before the introduction of new increased excise rates, traders increased imports by 23-42% depending on the type of fuel. Imports of gasoline (+42%, up to 166,000 tons) and liquefied gas (+41%, up to 124,000 tons) increased the most, setting records for the past two years.

Despite the decline in the number of importers in September, analysts note that their number is still significantly higher than before the start of the full-scale invasion. For example, in January-February 2022, only 114-117 importers operated in Ukraine. The increase in the number of traders became possible due to the change in the geography of the import of petroleum products, including the possibility of import by road transport.

Currently, according to experts, high concentration of traders leads to low profitability of wholesale sales due to chronic oversupply. This endangers the financial stability of companies operating in this area. Market professionals are calling for action to address the situation, as maintaining a balance between supply and demand is critical to restoring stability in the industry.

Thus, the decrease in the number of importers of petroleum products in Ukraine indicates serious structural problems in the industry, which require an urgent solution to ensure the sustainable development of the petroleum products market.