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The loosening of price control by the state led to an increase in the number of importers, which, as a result of competition, led to a decrease in fuel prices.
Since the beginning of the war, the number of legal entities declaring the import of diesel fuel has increased almost fivefold. Artem Kuyun, an expert of the ‘A-95’ Consulting Group, writes about this in his author’s column.
In particular, as of July, last year, 71 companies imported diesel fuel, and already in July-2022, their number increased to 355. At the same time, a significant increase was recorded in June-July – plus 196 legal entities.
The number of gasoline importers in July of this year increased to 105, while in July of last year there were about 36. As for autogas suppliers, there were an average of 73 last year, and now there are almost 114.
According to Artem Kuyun, this activation of importers has led to a surplus of autogas on the market and a surge in diesel imports, as a result of which prices have already started to fall.
‘A serious push is brewing on the fuel market. The crisis subsided a little more slowly than it started, but also quickly. Prices in the band are already testing the bottom, and the margin is returning to the norm. However, not everyone has. During the fight against the deficit, remaining without losses will not please everyone – most situational suppliers expect a hard landing,’ – the expert believes.
It should be noted that the government’s abolition of state price regulation in May 2022 contributed to the increase in the number of importers.
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