Ukrainian Oil & Gas Association, a member of which JSC Ukrgasvydobuvannya is, made a statement about its concern of the government position since the fuel market reforms are hampered.
We should remind that on November 23, 2018, the Verkhovna Rada adopted Law No. 2628, which provides for a number of measures to strengthen control over circulation of petroleum products, among which:
- 1. Licensing of production, storage, wholesale and retail trade in fuel from July 01, 2019;
- 2. Modernization of the electronic fuel sales control system (SEARP) with accounting for fuel at each excise warehouse;
- 3. Launch of a new system for monitoring the actual circulation and balance of fuel at the excise warehouses using modern measuring instruments (flow meters and level gauges).
- 4. Strengthening responsibility for illegal fuel operations.
Implementation of these measures will make it possible to reduce the shadow oil market volumes, increase tax revenues to the state budget and protect consumers against counterfeiting. It will also contribute to improving the quality of competition in petroleum products market.
JSC Ukrgasvydobuvannya supports the position of the Ukrainian Oil & Gas Association and advocates for licensing of production, storage, wholesale and retail trade in fuel from July 1, 2019.
“The reform of the control system for circulation of petroleum products serves the interests of the state, consumers and participants of the fuel market", said Sergiy Fedorenko, Chief Commercial Officer JSC Ukrgasvydobuvannya.
Additional information. According to the Ukrainian Oil & Gas Association, at least 1,500 filling stations and an indefinite number of petroleum products warehouses are now operating illegally in Ukraine. The volume of fuel sales through illegal filling stations reaches 40 thousand tons. The shadow market, in particular, in the diesel fuel segment, accounts for 20%, and liquefied gas – 30-50% depending on the region. The estimated losses of state and local budgets were about UAH 10 billion in 2018.