Ukraine
Ukraine - 3.1 Fuel

 

Fuel Overview

Before the full-scale Russian invasion in Ukraine in February 2022, most of Ukrainian fuel of all types came from Belarus and Russia. The highest dependence was in diesel fuel and LPG. After the beginning of the full-scale war, there was no fuel export from Russia and Belarus. Ukraine, as well as the European Union, have switched the origins of fuel from Russia and Belarus towards the EU (Romania, Slovakia, Poland, Bulgaria, and Greece in particular), USA, and Gulf Countries (Kuwait and Saudi Arabia). Only 2 out of the 10-11 million tonnes of oil products consumed were sourced from a few domestic refineries before the invasion (mostly Kremenchuk and Lysychansk plants), which processed domestically extracted oil from the western and north-eastern regions of the country.

During the war the fuel production and storage infrastructure has been the primary target of attacks and sustained very serious damage. This caused the fuel crunch in April-July 2022. Fuel rations for all users were established, taxes on fuel were lifted and the informal fuel market sprung up to circumvent the rations as well. By the time new fuel supply chains from partner nations with minimal storage use and different modes of transportation were established from the ground up, the shortage dissipated, the rations and tax exemptions were lifted (the latter - in July 2023).

Since then, despite the October 2022 - February 2023 rolling and emergency blackouts, no fuel shortages have occurred. Fuel nowadays is used both in transportation and emergency/independent power supply through generators, both by civilians and the military.

At the moment, till the end of martial law, the Ukrainian airspace is closed, hence no civilian jet fuel market exists as such. Beforehand, Turkey and Azerbaijan have been the primary suppliers of TC-1 and Jet A1 fuels. As well, local Ukrtatnafta company claims to have domestic production of the latter kind. Bulgaria and Romania  are proximate contenders for jet fuel exports as well.

Fuel Production

There were 7 large and 20-25 small refinery plants in Ukraine that could produce fuel before the war. Some of them are still operating during the war, but their output is not revealed.

Refinery plant name

Processing capacity, Mt

Region

Status

Full-scale oil refineries

Kremenchuk Oil Refinery

18.6

Poltava

Destroyed

Lysychansk Oil Refinery

16

Luhansk

Partially Destroyed, Occupied

Kherson Oil Refinery

7.1

Kherson

Not operating

Odesa Oil Refinery

2.8

Odesa

Not operating

PAT “Naftokhimik Prykarpattia”

2.6

Ivano-Frankivsk

Not operating

OPK “Halychyna”

2.3

Lviv

Not operating

Shebelynka Gas Processing Plant

NA

Kharkiv

Destroyed

Mini-oil-refineries

“Alternative Energy Sources Company” LLC

NA

Kharkiv

Destroyed

“Firma Garant” LLC

NA

Poltava

Not operating

“Standard Oil-2000” LLC

NA

Poltava

Operating

“Pasipol” LLC

NA

Poltava

Operating

“TD Eco-Oil” LLC

NA

Poltava

Not operating

PrC “MTN-Poltava”

NA

Poltava

Not operating

“Poltavavtorma” LLC

NA

Poltava

Operating

“NVP Istok” LLC

NA

Poltava

Operating

NA

Kharkiv

Operating

[Reshetylivka Mini-Oil-Refinery]

NA

Poltava

Not Operating

“Agroholding-C” LLC

NA

Kharkiv

Operating

“Khim-Consulting Trade” LLC

NA

Kharkiv

Operating

“Petrochemical Company “Matarpak-Ukraine” LLC

NA

Kharkiv

Operating

“Transcompect-V” LLC

NA

Dnipro

Operating

“Dnepro-Black-Oil” LLC

NA

Dnipro

Operating

“Ferst Group LLC”

NA

Dnipro

Not operating

“Kryvbasnaftoproduct” LLC

NA

Dnipro

Not operating

“Aleksprom” LLC

NA

Dnipro

Operating

PrC “Metal Union”

NA

Kropyvnytskyi

Not operating

“Spetz-Energomash” LLC

NA

Kropyvnytskyi

Criminally charged

“Kirovohradksa Oil Company” LLC

NA

Kropyvnytskyi

Operating

“Agrovelii” Production Company” LLC

NA

Sumy

Not operating

“Raffineria” LLC

NA

Cherkasy

Not operating

“Niom” LLC

NA

Chernihiv

Operating

 

The Kremenchuk, Lysychansk and Shebelynka plants were capable of producing Euro-4 or Euro-5 grade fuel. The rest of the plants required deconservation and modernization from Euro-2 or Euro-3 standards. Only two plants (OPK “Halychyna” and PAT “Naftokhimik Prykarpattia”) are in relative safety from Russian cruise missile attacks and proximity to the EU nations’ borders.

image-20240205103944-1

The fuel industry of Ukraine (for illustrative purposes; coal visuals not useful and production figures are outdated)

The mini-oil-refineries are predominantly located closest to the Kremenchuk oil refinery, Prydniprovia industrial region and Kharkiv as its dedicated industrial center. They usually produce a few tonnes of fuel per day. Mini-refineries’ legality and product quality are claimed to be questionable.

Fuel Transportation

All large fuel refineries are connected through the oil pipelines (most notably - “Druzhba” and Odesa-Brody). Outside connection therethrough is available towards Hungary (Belarus and Russia are omitted). According to the International Energy Charter: “The total capacity of the oil transmission system at the "entry" points was 114 mln tons/year at the "exit" points - 56.3 mln tons/year in 2021.” The pipelines were left unscathed and even subject to sanction circumvention against Russia by Hungary. As of September 2023 the oil transit from Russia through the Druzhba pipeline still takes place.  Sea access to the pipelines is available from Odesa, but for now it’s endangered by the Russian seaport blockade.

Road and rail transport have become prevalent deliverers of fuel in Ukraine since the Summer-22 fuel shortages. Those connect up smaller and more distant fuel storage facilities and mini-refineries to the fuel supply network as well.

The State Transportation Safety Service of Ukraine regulates the fuel delivery market through licensing the carriers based on compliance with technical safety requirements. It also hosts a registry of licence owners (though the full extent of data is available only pre-war; actual data is only on rail transport).

Fuel Storage

International Energy Charter: “The total capacity of the tank park was 1,083 thousand

cubic meters.” That was even enough for the Ukrainian government to suggest providing storage services to the world in times of overproduction early during the pandemic. Over the course of the conflict much of the storage capacity has been destroyed, some new facilities may have been built. Information on intact sites is confidential for operational security purposes.

Natural gas storage can be purchased from UkrTransGas company.

Partner Trans

Director: Oleksandr Mykhailovych Bilyk — +38 (050) 308-25-33

There are oil product storage tanks on the territory of the base. The necessary stock of oil products for the needs of enterprises has been created. It is possible to store petroleum products in the volume of up to 600 tons over the agreed period. Only high-quality heaters with temperature sensors are used to heat dark oil products. They form a shipment schedule in the required quantities.

Contacts: +38 (050) 308-25-33, +38 (097) 999-20-33

bazis.bitum@gmail.com

Location — Poltava region

Storage Volume — 600 tons.

Garant Oil Group

Director: Holubok Svitlana Valentynivna

Contacts: 0442778557

Location: Poltava region

Storage Volume — not specified

UKRPETROLCENTR LLC

Director: Bogoslavets Oleksiy Volodymyrovych

Contacts: +380944401884

Location: Ukraine, Kyiv city

Storage Volume — not specified

Petroline

The Petroline company offers single-walled and double-walled tanks for storing petroleum products.

Director: Yury Sulym

Contacts: 067 407-75-75

Location: Office and warehouse in Kyiv, ave. Povitroflotskyi, 92-B

Production and warehouse in the city of Zhovkva, Lviv region, str. Lesya Ukrainka, 77

Storage Volume — in tsd litres: 3 / 5 / 6 / 10 / 15 / 20 / 25 / 30 / 35 / 40 / 50 / 60 / 75

Ukravtonomgas

Director: Dorofeev Andriy Serhiyovych

Contacts: +38 (067) 433 88 70; info@ukravtonomgaz.ua

Location: Kyiv City

Storage Volume: 120 tsd. tons.

GT Group

Liquified Petroleum Gas storage, sales and logistics

Contacts: +38 (096) 023-19-65; 20office@gaztron.com

Location: Western and Central Regions of Ukraine

Storage volume: 63,310 m3

Fuel Distribution

There are 37 mainstream fuel distributors and innumerous smaller sellers. Fuel distribution in Ukraine is done through vehicular delivery from storage facilities to the fuel pump discharging it directly into the vehicles. However, during the fuel shortage or great distance from the pump canister carrying and open-air fill-ups were common. Also, during the fuel shortage, 5-100L rations were applied to all civilian traffic to a varying extent at the pumps; law enforcement, military, and critical infrastructure vehicles were exempt from such limitations.

Below is the list of fuel station networks provided by the “A-95” Consulting Group with the first being the most spread-out ones:

 
  • ОККО
  • WOG
  • Ukrnafta
  • BRSM-Nafta
  • Shell
  • AMIC
  • KLO
  • SOCAR
  • Avang 7
  • Avias
  • BVS
  • Chipo
  • Green Wave
  • Luxwen
  • Mango
  • Marshal
  • Motto
  • Neftek
  • Ovis
  • Prime
  • RLS
  • Rodnik
  • Route 20
  • U.GO
  • UPG
  • VST
  • VostokGaz
  • ZOG
  • Avtotrans
  • Katral
  • Kvorum
  • Market
  • Olas
  • Paralel
  • Rur group
  • Ukr-Pertol
  • Farktor
 

As for the jet fuel:

  • Lukoil Aviation Bulgaria
  • Breaker Petrol Refinery Blvd Novodar (Romania)
  • Thy Opet Aviation Fuels Joint Stock Company (Turkey)
  • The Shell Company Of Turkey Ltd
  • Tfs Fuel Services Joint Stock Company (Turkey)
  • Socar Turkey Petrol Ticaret As
  • Tfs Akaryakit H Zmetler Anon M Company (Turkey)

Fuel Pricing

The fuel price structure as of August 2023 is as follow: purchase price – 65%, taxes – 27% (taxes established as tariffs in EUR and excise in UAH), resellers cost and profit – 8%.

 

 

 

Prices for fuel in government-controlled areas in Ukraine you can see below in the table:

Fuel Prices per Litre as of: 22 Aug 2023 (local currency and USD - $)

Petrol (A-95 Premium)

54.71 UAH / 1.50 USD

Petrol (A-95)

52.54 UAH / 1.44 USD

Petrol (A-92)

50.07 UAH / 1.37 USD

Diesel

52.06 UAH / 1.42 USD

LPG

23.72 UAH / 0.65 USD

Detailed information on fuel prices in both the regions and the distributors is available on minfin.ua’s daily tracker.

Fuel Intelligence

The prominent sources for information on oil processing and supply chains nowadays are, among others:

Seasonal Variations

Agricultural (sowing most of the crops in Spring and harvesting them in Autumn), warfare (active campaigns in Summer and Winter and stalemates during impassability of local roads in Spring and Autumn) and climate cycles (use of generators as emergency power supplies both in Summer heat and Winter colds) can cause fluctuations in fuel prices.

Seasonal Variations

Are there national priorities in the availability of fuel? (i.e. are there restrictions or priorities for the provision of fuel such as to the military?)

Yes in case of shortages during the war

Is there a rationing system?

Yes in case of shortages during the war

Is fuel to lower income / vulnerable groups subsidised?

No

Can the local industry expand fuel supply to meet humanitarian needs?

Unknown

Is it possible for a humanitarian organisation to directly contract a reputable supplier / distributor to provide its fuel needs?

Yes

Quality Control and Assurance

Fuel quality in Ukraine is regulated by National Standards of Ukraine (ДСТУ) 7687:2015 (for benzine), 7688:2015 (for diesel fuel), EN 589:2017 (for automotive petroleum gas) and 4796:2007 (for Jet-A1 aviation fuel). The National Ecological Inspection of Ukraine was tasked to perform fuel quality control checks, but till the end of martial law they were seized by the decree of the Cabinet of Ministers of Ukraine. Fuel quality may be inferior when purchasing it from mini-refineries. There may be drastic price changes (such as the return of excise and VAT on fuel) or sporadic accidents even by major fuel distributors.

Quality control laboratories:

  • State Owned Enterprise “MASMA”
  • Rivne Scientific and Production Center for Standardization, Metrology and Certification
  • ASU Certification Centre LLC
  • Promstandart Certification Authority LLC
  • Kryvyi Rih Scientific and Production Center for Standardization, Metrology and Certification State Owned Enterprise
  • Dnipro City Scientific and Production Center for Standardization, Metrology and Certification State Owned Enterprise
  • Karti Private Company
  • All-Ukrainian Expert Service UkrExpertyza LLC
  • Kharkiv Independent Certification Centre LLC
  • Rivnestandart LLC
  • Universalnaftokhim LLC
  • Certification Information Centre Product Certification Authority LLC
  • DP Zhytomyrstandart LLC
  • Consumer Expertise Institute
  • JurEx Expertise and Law Consulting Firm

Disclaimers

Due to the ongoing Russian invasion of Ukraine, official information on fuel has become confidential and is not published in statistical sources: neither production, nor foreign trade, nor storage figures on it are available since January 2022.

Inclusion of company information in the LCA does not imply any business relationship between the supplier and WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.

Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider.

 

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