The pace of the fall in prices for fuel in Ukraine will depend on the hryvnia exchange rate to the dollar, according to Kyiv-based UPECO consulting company.
"The dollar going over UAH 6, which was agreed as the ceiling margin on October 27 [at a meeting of the premier with oil market players], is balanced by a fall in the prices on the international market, although if the hryvnia exchange rate weakens in the future, this will hinder any fall in the price of fuel," reads a company report, citing UPECO CEO Serhiy Kuyun.
Among other factors preventing a more active fall in the prices of fuel is a fall in consumption and high volumes of fuel in stock with suppliers, Kuyun said.
"The fall in sales is explained not only by seasonal factors, but by a fall in demand in the industrial sector, which has had to cut production and jobs," he said.
Taking into account the pace of growth on the foreign markets, UPECO forecasts that in November the fall in retain prices will reach UAH 1 per liter, which is in line with agreements reached between the market players and the premier.
The agreements foresaw a fall in retail prices of fuel by UAH 1 per liter in November, to UAH 4.7 per liter of A-95 petrol and to UAH 5.2 per liter of diesel fuel, UPECO said.
