TRENDS OF THE LIGHT OIL PRODUCTS MARKET OF UKRAINE AND PROSPECTS OF ENERGY SECURITY IN THIS FIELD

Abstract

The market of light oil products is decisive for every country, significantly influencing all sectors of the economy and the standard of living of citizens. It was investigated that in 2020, compared to 2019, sales volumes of all types of fuel in Ukraine decreased, except for propane and liquefied butane. However, in 2021, the demand for all fuel types increased significantly. In 2021, compared to 2020, the cost of all types of fuel in Ukraine also increased. This trend of increasing the cost of fuel will continue in 2022. At the same time, fuel prices differ depending on the market operators. It has been established that the Ukrainian market of light oil products is quite competitive. However, today almost 40% of all high-octane gasoline and diesel fuel in our country are sold only by three large chains operating under such brands as WOG and OKKO, as well as UKRNAFTA. A feature of the market of light oil products of Ukraine is significant dependence on imported supplies, the share of which in 2021 reached 80 %. Logistical links in the export of oil products from European markets were not developed. In the market of light oil products in Ukraine, their sellers use primarily non-price competition tools. The loyalty of the gas station network customers is implemented through various marketing activities (advertising, social and environmental projects). In martial law conditions, the issue of providing fuel to the economy of Ukraine and the population became more acute. During the first six months of the war in 2022, Ukraine increased its fuel imports 12 times, satisfying market demand. During this period, our country received 95 % of imported gasoline, as well as 72 % of diesel fuel, from EU countries. The consumer survey results showed that gasoline A-95 and diesel fuel, which meet Euro standards, predominate among the popular types of fuel in Ukraine. Customers' choice of gas stations is most influenced by their convenient location and the fuel level in the tank. The most popular gas station chains for the respondents are OKKO and WOG gas station chains. Among the additional services at gas stations, the most popular are purchasing food and drinks, free Wi-Fi, food and non-food products, parking, and car washing. The most promising additional services at gas stations include a mechanic's consultation, medical corner, use of terminals and ATMs, car wash, free Wi-Fi, parking, and Internet ordering points. Prospects for developing the market of light oil products in Ukraine depend primarily on the end of the war in Ukraine and the reconstruction of its economy. The Polish company Orlen can be considered the most likely partner for agreeing to process Ukrainian oil to produce the fuel necessary for Ukraine further.