The Fuel and Energy Business Association, in collaboration with Pro Consulting, has conducted an analytical study to highlight the role of small and medium-sized enterprises (SMEs) in the fuel sector.

The report demonstrates that Ukraine’s fuel market is undergoing significant changes due to economic and regulatory factors. Large companies continue to dominate, generating more than half of the industry’s revenue, while SMEs constitute the majority of market participants but face challenges due to limited profitability. The decline in fuel sales volumes reflects shifts in consumer preferences and economic pressures that are reshaping the market structure. Despite difficult conditions, SMEs remain key contributors to tax revenues and the overall functioning of the industry. The current environment requires businesses to adapt to new tax regulations and seek ways to enhance competitiveness in an evolving market.

Fuel Sales Volumes
• Over the past three years, fuel consumption in Ukraine has declined: in 2023, sales dropped by 18%, and in 2024, they fell by 21% compared to the pre-war level of 2021.
• In monetary terms, the decline was less pronounced, indicating rising fuel prices.

Market Structure by Company Size
• 17 large companies account for 50.3% of the industry’s total revenue.
• The remaining 49.7% is generated by SMEs.
• Micro and small businesses make up more than half of all market participants, yet their profits do not exceed 22% of the total.

Taxes and Structural Market Changes
• In 2024, SMEs in the sector contributed nearly 40% of total tax payments.
• Following the introduction of an advance tax for fuel stations, the number of active fuel trading licenses decreased by 7.8% in the first months of 2025.
• If economic conditions do not improve, the number of local and regional fuel stations could decline by up to 20% in 2025.

Association members have access to the full analytical report, which includes market development forecasts.