There is not a single whole tank farm left on the left bank: Ukraine has nowhere to store fuel

The situation in the fuel market of Ukraine is worse than it was even in the spring. And it's not even about prices.

"Unlike the spring crisis, this time the situation looked (and looks) much worse. Then we saw much higher prices, but life teaches more and more that this is not the main thing. The main thing is to have supplies. There are problems with this, which, apparently, will stay with us for a long time," Sergey Kuyun, director of the A-95 consulting group, wrote for the Mirror of the Week.

In his opinion, the retaliatory strikes of the Russian army on Ukraine's maritime exports have deeper consequences, which not least provoke a shortage of fuel resources.

"Firstly, safety risks have reduced the supply of fuel by tankers. After the attack on the going on Ukraine tanker freight and insurance have soared to the skies, and there are almost no people willing to come to us. We also add that the Romanians have closed the export of petroleum products from their refineries, but for now they have left the possibility of transit through ports, through which, in fact, the bulk of fuel comes from the Romanian direction. Let us also recall the shallowing of the Danube: now barges can only be loaded by 30-50% of their capacity, which accordingly reduces the capacity of this supply channel," the expert writes.

Another factor, he notes, importers switched from water to wheels, which dramatically increased fuel consumption. Moreover, industrial consumers began to actively buy fuel in bulk, which is why wholesale prices soared above retail prices.

"Thirdly, trucks and wagons with grain and other exports were queued at land border crossing points along with fuel trucks and tanks. The rhythm of supply has dropped. In addition, Poland suspended traffic on certain sections due to the heat, and the Polish concern ORLEN, for technical reasons, cut August quotas to Ukrainian companies by 20-30%," continues Sergey Kuyun.

The director of A-95 believes that soon the situation may improve in the fuel market, but the main issue will be different: how to prepare for winter? In his opinion, one should definitely count on the worst, since the Russian army will not stop retaliatory strikes. At the same time, the government wants to create a minimum stock system from October 1, but the industry is against it.

"First of all, where to store it? There is no longer a single surviving oil depot on the left bank, and in the whole country, perhaps, there are no facilities left that have not been flown at least once. Secondly, now they are attacking not only oil depots, but also gas stations with fuel trucks. And if retail chains have at least partial storage in underground tanks at gas stations, then wholesalers do not have this. They either have to leave the market immediately (customs will not issue imports in the absence of confirmed stocks), or wait for a blow to the storage facilities and only then leave the market due to losses," Sergey Kuyun writes in the Mirror of the Week.