President of Ukraine

Volodymyr Zelenskyy urged gas station networks to lower fuel prices for real, not under loyalty programs

23 December 2019 - 17:59

Volodymyr Zelenskyy urged gas station networks to lower fuel prices for real, not under loyalty programs

President of Ukraine Volodymyr Zelenskyy held a meeting with representatives of companies - participants of the fuel market, oil and gas industry, and gas station networks.

During a meeting, the parties discussed the reduction of fuel prices at Ukrainian gas stations and the de-shadowing of the market.

“We urge you to respond more actively to a stronger hryvnia and to reduce the price of gasoline accordingly. Not to give discounts, but (to reduce the price - ed.) on the price board," the President noted.

Deputy Minister for Economic Development, Trade and Agriculture of Ukraine Serhiy Nikolaychuk noted that gasoline and diesel prices had started to decline recently. There is also a trend of hryvnia’s exchange rate strengthening, hence, fuel prices will continue to fall.

Gas stations should significantly reduce fuel prices, but instead they increase payments for bonus programs.

Deputy Head of the Office of the President Yulia Kovaliv stressed that the real price of fuel was very different from the price set by the companies in accordance with loyalty programs.

“This situation is not common in most European markets - with such large loyalty programs. We offer to put the price at which you really sell gasoline on the price board and optimize loyalty programs increasing competition in the market," Yulia Kovaliv stressed.

Representatives of companies participating in the fuel market, for their part, noted the problem of illegal gas stations. According to them, almost 25% of gas stations are illegal. Illegal refineries also operate.

The President promised to actively combat the illegal market and to hold a meeting with law enforcement agencies on this topic in early 2020.

“We are ready to help. If you have regional data, please let us know. We will deal with illegal entities... I promise you that starting from January, after the holidays, we will begin to struggle with all illegal entities,” Volodymyr Zelenskyy said.

The participants of the meeting agreed to meet again in January and discuss the problem of combating illegal gas stations.