Comparison of wholesale fuel prices, how to choose the best supplier in Ukraine

The number of Ukrainian importers of oil and its derivatives currently exceeds 700 organizations, whereas in 2021 there were only 200 such enterprises. The increase in numbers was triggered by a fuel shortage at the end of spring 2022 and the start of transporting petroleum products by road. There are also unscrupulous organizations selling homemade fuel or diluting quality products with cheap mixtures containing high levels of harmful substances. Such "ersatz" not only damages car engines but also pollutes the environment.

The UTNK company offers to purchase fuel from European producers at a low price for your enterprise's needs. We conduct laboratory analysis, so our petroleum products are always of high quality and comply with international standards.

What makes up the price of fuel on the wholesale market in Ukraine?

Currently, our country purchases about 85% of its fuel abroad, so the cost of petroleum products for the Ukrainian market is influenced by the following factors:

❖    Dependence on exchange rates. Purchases between countries are made in US dollars.

❖    Dependence on global oil prices. Each refinery operates with a 3–4 month stock of raw materials, so prices are reduced gradually.

❖    Quotations of petroleum product prices in Europe.

❖    The market segment your organization is in—large wholesale, medium, small, or retail.

❖    Availability of own oil depots. Organizations paying rent for storage at third-party warehouses include this cost in their product prices.

❖    Quality of logistics. Lower delivery costs mean lower product prices.

❖    Another factor influencing the cost could be the adoption of a law in 2025 on the creation of strategic reserves of petroleum products. If it is impossible to create or maintain the required amount of reserves, a fine will be imposed, which buyers will pay as it will be included in the product price.

Considering these factors, prices on the wholesale fuel market in Ukraine fluctuate, and each supplier's prices depend on their incurred costs.

How to choose a reliable fuel supplier.

Every organization looking for a reliable petroleum product supplier should follow these rules:

• Find several suppliers with the most attractive offers. Check their permits—availability and expiration dates. Look for organizations that have already worked with this supplier, find out how the cooperation went, and request an official review.
• Find out how incoming quality control is conducted, whether the supplier has an accredited laboratory, and what tests they are authorized to perform. Also, check for product certificates and the standards they comply with.
• Check the supply organization's ability to meet the declared delivery volumes and whether they can handle increased fuel consumption in case of high demand for your services or significant expansion of your vehicle fleet.
• Find out how and under what conditions the fuel will be transported to your enterprise. Is there a possibility of urgent delivery of an unscheduled batch of gasoline or diesel?
• Review the price offers of potential suppliers and compare them with other competitors. A low price does not guarantee product quality or service, so be careful with your choice.

And only when all these points satisfy you—can you proceed to signing a contract.

The UTNK company meets all the listed selection criteria, so purchasing fuel from us under a long-term contract would be the right decision.