Ukraine is at risk of a serious fuel shortage: causes and consequences

Our informant from the Office of the President reported that airstrikes on fuel storage facilities and border blockades could cause a serious fuel shortage. Accordingly, the Office of the President has ordered the Cabinet of Ministers to prepare an alternative plan for supplying the country with fuel to prevent a sharp increase in prices and shortages.

The country has experienced a significant fuel shortage and price increase. This was preceded by the reinstatement of taxes, attacks on oil depots by the Russians, and the blockade of the borders with Ukraine by European countries. Now, due to the blockade of the Polish border, fuel and autogas prices have increased significantly, as it is difficult for suppliers of liquefied gas to switch to the railway due to technical restrictions. They have to bypass the Polish border through Slovakia or Romania, which leads to an additional increase in the cost by about 3 hryvnias per liter. The return of taxes has only exacerbated the already difficult situation on the market. Given the embargo on Russian oil in Europe, and accordingly in Ukraine, the situation is only getting worse, and fuel prices continue to rise.

At the same time, Ukraine is experiencing an acute fuel shortage, which could lead to a failed sowing season that is set to begin in the near future. Many fields on the borders remain minefields, and high fuel prices and a shortage of labor due to mobilization could ultimately lead to a failed sowing campaign and a new rise in food prices.

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