BAKU, Azerbaijan, Dec.18
By Leman Zeynalova – Trend:
The planned reduction of retail fuel prices has been ongoing by Ukrainian subsidiary of Azerbaijan’s state oil company SOCAR for more than a month, SOCAR Energy Ukraine told Trend, commenting on the recommendations of Ukraine’s Antimonopoly Committee.
“The main reasons are a significant strengthening of Ukraine’s national currency hryvnia and a drop in prices at the external oil market. If these factors continue to have a positive impact on the market, then in the near future we can expect a further decrease in the fuel prices at gas stations by an average of 30-40 kopecks,” the company said.
SOCAR Ukraine noted that this is not a quick process, since fuel is purchased several months before the sale.
“Accordingly, there is a certain time lag between the behavior of wholesalers and retailers. Each 1 percent change in the cost of fuel at the border in two weeks can lead to a change in retail prices by 10 kopecks,” the company said.
The Antimonopoly Committee of Ukraine (AMCU) has recommended the Ukrainian subsidiary of Azerbaijan’s state-owned company SOCAR, as well as WEST PETROL MARKET (WOG brand), OKKO-RETAIL (OKKO brand), UKRNAFTA (UKRNAFTA brand), AMIC Ukraine (AMIC Energy brand), Alliance Holding (brand SHELL), Ukrpaletsystem (UPG brand) and GLUSCO Retail (GLUSCO brand) to lower fuel prices.
These companies are obliged to consider recommendations for lowering prices in a 10-day period and notify the AMCU about this.
SOCAR has been operating in Ukraine since 2008.
SOCAR Energy Ukraine’s Trading House is a permanent member of the Ukrainian Energy Exchange and regularly takes part in e-trading. Its sole goal is to acquire a resource for commercial needs.
The company first participated in natural gas trading at the Ukrainian Energy Exchange e-platform on August 13, 2019. During the auction, lots of 50,000 cubic meters were traded.
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