The liquefied gas market in Ukraine is experiencing «growing pains» and the price at the pump has increased due to its dependence on Russia and the huge number of illegal traders. This opinion was expressed by Director of «Consulting group a-95» Sergey Kuiun on his page in Facebook.
He noted that the wholesale price for liquefied gas has reached 30 thousand UAH per ton, so the price of autogas at the pump could jump to 17.5 UAH per liter.
«The body grows so quickly that the life support system can’t keep up and it leads to ailments and even loss of consciousness. Here is one such case happened today with the gas market. It has grown over the past three years by almost half. In these three years, the price of gas was 35-40% of the cost of gasoline A-95, whereas the norm is 50-60%. Then this growth is more smooth and predictable. The economic crisis has pushed even more car owners to cheap fuel. And the market simply can not keep up with such volumes,» – said the expert.
He noted that because of one failure, the market began to stagger, which could hardly be possible in Mature markets gasoline or diesel fuel, which stock and infrastructure, including for receiving fuel at sea.
«Another problem is the growth of illegal immigrants. Their huge number in the retail market and the wholesale. And thanks to them these three years, the price was so low. This low cost was mainly achieved by tax evasion. View, and now the gas in Kyiv or Zhytomyr oblast is cheaper than in Kiev, on 1 UAH/liter. Why? Because all illegal immigrants from Kiev moved outside the Ring road… the Illegals have also contributed to the crisis. It’s a business one day, cash-commodity-cash. No bother with reserves, investment in storage, etc.» – wrote the expert.
Kuyun said that the civilized company can’t compete with illegal immigrants and do not stock and special investments in order to be able to compete with illegal immigrants, lowering the cost of the goods.
«To build a market and a diversified supply system. Funny to hear today, as some traders and observers blame the crisis on Russia – she was the one who provided all these three years, the ever-growing demands of the Ukrainian market. In fact, we got in another relationship. Left it for oil, natural gas, light oil and liquefied gas are stuck. At the beginning of this year, Russian made single exporter of gas to Ukraine – «Rosneft», which sells its resources through a Swiss company Proton Energy. Its volume – about 40 thousand tons per month. It’s about 25% of consumption», – he stressed.
The expert said he did not understand what was won by the Russians from creating a deficit in Ukraine, as «the best times» they were put on the market up to 70 thousand tons of gas per month, providing 50-60% of the market.
«The margin of the current supply is fixed, although in such a daze, the Russians could now raise enormous amounts of money. Mind Russia not to understand, as they say… But the most important thing: since when we have started to expect from Russian something good? Today, there are abstracts, they say, that if the Russians hadn’t left a single supplier, we could buy from other Russian producers and the crisis would not exist. Guys, what kind of work with the Russians, we have a war with them actually. What accusations?» – he was surprised.
Kuyun added that Ukraine needs to build market excluding Russia, which is a factor of destabilization.
«I would have closed out the delivery, honestly, that was not the temptations and illusions. Yes, gas went up for a couple of hryvnia, as the sea gas is very expensive. But we would have the stability and predictability of… do Not look at the current problems with the gas policy. This is the problem of a growing market. He needs to rest against the ceiling, and now we got another signal the completion of the growth of this market. Maturity will mean stability and growth rates, and this is reducing the attractiveness of natural gas for consumers. But there is no tragedy – we are already world leaders in the consumption of LPG in transport», – he concluded.
Kuyun on the crisis in the Ukrainian market of liquefied natural gas, I would shut down supplies from Russia, in order to avoid temptations and illusions 28.08.2017