On April 3, Kyiv hosted the B2B meeting “Strategic European Integration: Gasoline with Bioethanol. How the Fuel Market Will Operate Starting May 1,” organized by NaftoRynok and the Ukrainian Bioethanol Association. The event brought together key market players: bioethanol producers, gasoline importers and traders, representatives of national and regional fuel station networks, additive suppliers, and government officials. The Fuel and Energy Business Association sponsored the event, supporting initiatives that foster the development of small and medium-sized businesses and the fuel market as a whole.

The conference focused heavily on global trends in the production of bioethanol and fuel blends with bio-components. Participants discussed the feasibility and necessity of launching a domestic bioethanol market in wartime Ukraine, identified key changes in the Ukrainian gasoline market, analyzed the cost structure of bioethanol production and sales strategies for petroleum products, and reviewed the experience of international companies in stabilizing ethanol-containing gasoline.

Dedicated segments of the event were devoted to regulatory discussions, with speakers addressing the implementation of the law on bio-gasoline, market balancing and models for fuel and petroleum products with bio-components. They also explored the development and implementation status of relevant by-laws and discussed the issue of voluntary certification to ensure bio-component compliance with sustainability criteria and appropriate control mechanisms.

What Will Change Starting May 1, 2025?
On this date, a new requirement will come into effect mandating a minimum of 5% bioethanol (with an absolute margin of error of ±1%) in gasoline. This applies to all volumes of motor gasoline distributed from wholesale and retail fuel outlets, except for gasoline with an octane rating of 98 and above and gasoline supplied for the needs of the Ministry of Defense of Ukraine, the central executive body implementing state policy on strategic reserves, and for the formation of minimum stocks of oil and petroleum products.

However, market participants are already raising critical questions:
• How and by whom will the quality of gasoline with bioethanol and compliance with the mandatory bioethanol content be verified?
• What will the quality control system look like?
• Who will be responsible for supervision and inspections?
• What should market participants do with their remaining stock of pure gasoline as of May 1, 2025?

Currently, the regulatory acts and procedures necessary for implementing Law No. 3769-IX are not yet in place — including the technical regulation for alternative motor fuels, reporting formats, or verification methodologies. According to a resolution from Prime Minister Denys Shmyhal concerning the organizational plan for preparing the required regulations to implement the Law of Ukraine “On Amendments to Certain Laws of Ukraine Regarding the Mandatory Use of Liquid Biofuels (Bio-Components) in the Transport Sector,” the responsibility for developing these acts has been assigned to the relevant central executive authorities, namely:

• The Ministry of Economy (MinRozvytku) is responsible for developing the procedure for administrating the accounting of biofuel (bio-component) content in motor and alternative motor fuels, ensuring compliance with sustainability criteria, and defining a list of feedstocks with double-counting value in calculating the contribution of biofuels and biogas for transport use.
• The Ministry of Economy is also tasked with developing the procedure for verifying the origin of biomass, which must be provided by businesses involved in the production and supply of biomass for biofuel and biogas manufacturing.
• The Ministry of Energy (MinEnergo) is assigned the responsibility of developing procedures for verifying biofuels’ and biogas’ compliance with sustainability criteria for transport use.

Therefore, the lack of clear regulatory oversight ahead of the law’s effective date has justifiably raised concerns among conference participants. Some reassurance came from attending government representatives. “As of May 1, 2025, the State Environmental Inspectorate will not conduct enforcement actions or impose penalties for selling gasoline without bioethanol. For that, we need an approved violation protocol, which is currently unavailable,” stated Dmytro Zaruba, First Deputy Head of the State Environmental Inspectorate. Nonetheless, both the government and businesses are committed to developing transparent and effective solutions that will contribute to energy independence and compliance with EU standards.

Consumer Concerns
For many drivers, the introduction of new fuel standards raises concerns: will the updated fuel composition damage engines? European experience offers a clear answer. Most modern vehicles are fully compatible with E5 (5%) and even E10 (10%) bioethanol-blended gasoline.

In fact, since 2011, bioethanol has been used in countries such as Germany, Finland, Sweden, the United Kingdom, France, and Poland. That means EU countries have been using it as a sustainable and efficient fuel component for over a decade.

Imported Gasoline and Market Realities
It is worth noting that a significant share of gasoline imported into Ukraine from the EU since 2022 already contains bioethanol, in accordance with European standards. According to market estimates, over 1 million tons of gasoline were imported in 2024 alone, meaning Ukrainian drivers have effectively been using bioethanol-blended gasoline for quite some time.

Recently, there has been conflicting or incomplete information circulating regarding the new standards in the context of European integration. The Fuel and Energy Business Association urges stakeholders to trust leading industry sources — particularly the expert insights from NaftoRynok, which was one of the first to professionally cover this topic.

New Opportunities for Business and Consumers
Ahead lie technical adaptation, logistical changes, and new investments. This is the moment when the foundation for fair competition, better-quality fuel, and sustainable growth of Ukrainian businesses and the economy is being built. Change is inevitable. What matters is ensuring that it is clear, predictable, and beneficial — for the market and for every driver.