Petrol out of control: how to change the price of fuel?

Gasoline market released …

gasoline market released. In the Ministry of Economy decided the time to abandon the idea to introduce state regulation of prices for fuel and lubricants.

After paradoxical rise in price of gasoline this summer in the Cabinet began to think about how to strengthen government control over the market and set the limit surcharge. But suddenly abandoned this idea. What will now be able to stop the rise in price of petrol?

State seeking leverage over the chaotic Ukrainian market gasoline. Since May this year, when prices went up at petrol stations there are various ways to calculate a new pricing formula for light petroleum products. But none of the options was not perfect. So the influence of the market in the Ministry of Economy for the time being abandoned.

Government of washing his hands

Gas prices on the Ukrainian market are not reasonable, - has agreed to the Minister of Economy Bohdan Danylyshyn. And he promised at the meeting of the government to establish state regulation. But suddenly the issue was removed from the agenda. Minister of Economy intends to return to it after a while, after it has been considered at a meeting of the expert-analytical group with the participation of major players in the market - the same oil traders who have reduced the price of gasoline completely unprofitable.

In the absence of state control of prices on the Ukrainian market of petrol will be as chaotic and not associated with global trends, experts believe. Prices will be unchecked and without any particular logic to go up - suggested in an interview with the head of consulting company Fuel Alternative Vitaly Daviy. In his opinion, some control over the market of petroleum products from the state is required and applies even in countries with the most developed market economies.

But state regulation is another side to the coin. About her never tire of talking yourself market operators. They recall trying hard interference in pricing in 2005, when gasoline was in short supply. From the fuel shortage no one is safe today. Lack of petrol possible. It is not correct calculations would lead to the fact that the market operators will be unprofitable to trade in gasoline, given the small margins, or lack thereof. Some of them will hold the fuel and will not sell it at prices fixed by the Government, - said the head of the analytical department of the company Pro-Consulting Alexander Sokolov.

formula ideal price

To

and gasoline is not more expensive, and petrotraders earned, back in 2007 the government signed a memorandum with the major market participants. Then the operators and traders pledged to focus on those prices, which will be calculated expert-analytical group of the Ministry of Economy. In the pricing formula takes into account factors such as foreign exchange rate, lending rates, the cost of fuel storage. This formula is valid and now - as recommended retail margin on petrol should not stand in the 1350-1360 UAH. ton.

But the formula is, but there is no price stability. So to blame formula - experts think the Ministry of Economy. When in May, prices went up at petrol stations, it was suggested to take into account in the formula wholesale prices of Ukrainian refineries. But after the idea was rejected because of a fall in prices on world markets gasoline in Ukraine would remain still expensive.

Another idea - to separately calculate the price of imported and domestic oil products. But analysts are skeptical that such a separation will lead to price optimization. What is meant by domestic oil? It is one thing - when gasoline from oil extracted in Ukraine. Another - when he performed at the Ukrainian factories of Russia's oil, bought at world prices. It's hopeless graduation, which will cause a lot of confusion, - believes Daviy. According to the expert, for price stability should be kept unchanged formula and to add a little bit of government control. Manage the market could be a market method, if in Ukraine there was a large government-controlled company. But since this is not, one thing remains - to meet and negotiate with oil traders.

gasoline commanded dollar

Despite the fact that the market remains chaotic and bezkontrolnym, positive tendencies. The world price of oil decreases, which means that there is hope that petrol will become cheaper, too. And so it was now - the average retail price at the petrol stations in Ukraine on petrol A-95 is 7.62 UAH /liter. Petrol A-98 now selling at an average cost 8.32 UAH. /L., Reported portal Ukrainian oil. Another fortnight ago, the cost of the popular A-95 exceeded UAH 8. But will the lower fuel prices steady trend?

Reduction in price of oil on world markets is not always helps to live Ukrainian motorists. After the notorious exchange rate embodied in the price, making our market light oil well, a very special phenomenon. That was the summer of this year, when the worldwide oil was dropping, and in Ukraine - more expensive. Traders and operators laid currency risks in price, taking into account the possible increase in the dollar - reminds Sokolov. This trend will not change now - the higher the dollar, so costly to purchase gasoline.

Elena Pavlenko

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