Outpacing Belarus: Kremenchuk Oil Refinery Is Increasing Production

In 2019, the balance of the Ukrainian gasoline market increased by 1.3% reaching the point of 1,95 million tons. According to Business.Censor, referring to enkorr, the Ukrainian refineries increased their gasoline production by 10% (84 thousand tons), reaching the point of 908 thousand tons.

For the first time, the gasoline by Kremenchuk Oil Refinery (Ukrtatnafta), exceeded the imported volumes from Belorus—before 2019, it had been the main source of supply of this type of petroleum products to the Ukrainian market.

Thus, the refinery increased its production by 8.5% (59 thousand tons) and reached the point of 752 thousand tons. Its share in the overall market balance increased from 36% to 39%. Shebelynka Gas Processing Plant (Ukrgasvydobuvannya) increased its gasoline production by 19.5% (26 thousand tons), reaching 156 thousand tons. The total share of domestic production per year increased by 3.7pp. and is now totalling 46.7%.

At the same time, the gasoline import declined by 5.6% (56 thousand tons) to 1.03 million tons in 2019. Belarusian refineries also reduced gasoline deliveries to Ukraine by 17% (146 thousand tons) to 691 thousand tons—thus, the Belarusian share in the Ukrainian market was reduced from 43.5% to 35.5%.

Deliveries from Lithuania increased by 40%, reaching 328 thousand tons, and the Lithuanian share increased from 12% to 17%. The other 10,2 thousand tons of gasoline got imported from Poland; 6,3 thousand tons were delivered via sea outlets.

According to the publication, the annual balance of gasoline has grown for the first time since 2016. As reported, in 2019, a number of retailers started purchasing gasoline from Kremenchuk Oil Refinery on a regular basis. In particular, such companies as WOG, Amic, Marshal, Neftek and others significantly increased procurement.

In 2018, Ukrtatnafta started lobbying the introduction of barrier imports from Belarus—the company motivated it with a need to protect the domestic producer against subsidized imports. It also insists on revising the excise tax rates on gasoline and liquefied gas. The increasing popularity of the latter has decreased gasoline consumption lately.