The leading Internet resource “Zaxid.net” contacted the “Fuel and Energy Business” Association with a request for an exclusive comment on the current situation in the fuel industry. The Association’s experts shared their professional opinion and key insights that will help readers better understand the challenges and prospects of the market.
The modern fuel market of Ukraine is at a crossroads. Continuation of hostilities, economic difficulties and growing competition amid global challenges force market players to adapt to new realities. The President’s recent signing into law of a “historic” tax increase has become another serious challenge for the fuel business, especially for regional gas stations, small and medium-sized businesses, which are already in difficult conditions.

Fuel market challenges.
The year 2024 began with a reduction in the volume of retail sales of fuel, which could be a consequence of population migration. According to official data, over the last period, about 1.5 million people left Ukraine, which reduced fuel consumption in the regions (source: State Statistics Service of Ukraine). Against this background, the new law on tax increases creates additional pressure on entrepreneurs. Excise duties have increased from +13.6% on gasoline, diesel fuel +27.3% and liquefied gas to a record +184.6% this year and will continue to grow in 2025. This will accordingly affect the cost of fuel, competitiveness, maximum savings in operating costs, closing gas stations and reducing the number of jobs.
In addition, global factors affect the market. The increase in oil prices on world markets in 2024 reached 15%, which affected the cost of imported fuel, according to Bloomberg. Logistics costs also remain high due to damaged infrastructure and risks during transportation.

Statistics and analytics.

• Reduction of consumption. According to the State Statistics Service of Ukraine, compared to 2023, the total volume of fuel sales decreased by 12%. This is especially noticeable in the western regions, where consumption fell by 18% due to the mass exodus of the population.
• Number of gas stations. Over the past year, the number of operating gas stations in the regions decreased by 7%, and in the most affected areas – by 12% (source: market research of the consulting company Enkorr). The “Fuel and Energy Business” Association predicts that this trend may worsen due to the new tax burden.
• Labor market. According to the State Employment Center, more than 50,000 workers are employed in the fuel sector. Increased taxes and operating costs put jobs at risk, especially at small regional chains.

Prospects and opportunities.
2025 will be a turning point for the fuel market of Ukraine, which is looking for ways to adapt to new economic and regulatory conditions. The main challenges remain the increase in tax pressure, the decrease in fuel consumption and increased competition from large chains. However, even in these conditions there are opportunities for market stabilization and growth.
In order to preserve the stability of the fuel industry and ensure its development, it is necessary to join forces. Tetyana Dumenkova, deputy head of the “Fuel and Energy Business” Association, emphasizes the importance of developing a reliable community of representatives that would promote effective communication between business and the state (B2G). Such cooperation will allow more flexible response to changes in legislation, discuss initiatives and form a common position to protect the interests of the market.
In addition, the exchange of experience between market participants is important. Joint educational programs, seminars and forums can become a platform for the introduction of new technologies, the search for effective solutions and rationalization. Further growth in operating costs requires businesses to optimize processes and upgrade technology. In the long term, companies that invest in the implementation of modern approaches and solutions will have the greatest chance of success.