The expert explained when the cost of autogas will reach the point beyond which its use will become unprofitable
Kyiv • UNN
The price of autogas has not exceeded 80% of the price of gasoline, the threshold beyond which its use will become unreasonable, says expert Sergiy Kuyun, who expects the current price surge caused by the shortage to subside within ten days.
The price of autogas has been steadily rising in recent weeks. This type of alternative fuel is used by many motorists as a cheaper substitute for gasoline, but the use of autogas is justified only if it is significantly inferior to gasoline in price. UNN asked fuel market expert Serhiy Kuyun whether the cost of autogas has reached the point of economic feasibility and what will happen to fuel prices in the future.
Details
Currently, according to Sergiy Kuyun, the cost of autogas has not yet reached the point where its use will not be justified.
This threshold is 80% of the cost of gasoline. Today, gasoline costs an average of 54 hryvnias, so 80% will be around 43-44 hryvnias per liter. Accordingly, it is still more attractive than gasoline for those who already have LPG
According to Kuyun, the issue of supplying autogas, the price of which has risen due to the shortage, will be resolved in the next ten days at most.
"We see that our survey of traders shows that they have contracted the necessary amount of resources and now it is just on the way, when it arrives the price will start to fall very quickly. The deficit is related to the blocking of the Polish border, as we used to import 30% of our LPG imports by road through the Polish section of the border, which is somewhere around 25% of our consumption. So, of course, when such a large volume is blocked at once, when it is not available, it is difficult to quickly find other sources of supply. It took some time, but they did find them and and now, I think in December, this issue will be resolved. Regardless of what they unblock there or not, this issue will be resolved," the expert believes.
He clarified that more and more autogas is being supplied by rail, as well as through Romania. For the most part, gasoline and diesel fuel are also supplied by rail, so the blocking of the border did not have the same impact on these types of fuel as in the case of autogas.
The situation with gasoline is much better, it is the opposite, let's say, with both gasoline and diesel, because the Polish border, the supply of vehicles through it, did not have any critical importance, it was up to 10%. And so, very quickly, the market simply shifted to other areas, and accordingly, we even have a surplus of product for these items, and we see that prices are falling
