Since fuel prices largely influence the formation of prices and tariffs for almost all goods and services, any instability in the petroleum products market immediately affects the average citizen and their wallet. So what is happening in the fuel market? At the end of last year, there was some increase in prices for certain types of fuel, caused by subjective, in our opinion, reasons related primarily to the political situation that existed in Ukraine at that time. But in January 2005, prices for all petroleum products stabilized and remained practically unchanged. In February-March, the average fuel price levels decreased by an average of 2-5 percent, which gave reason to hope that with the onset of spring there would be no sharp increase in petroleum product prices. However, starting from March 24, fuel prices have been rising daily. As of April 4, they had already risen by 7-9 percent compared to the price level on March 23, 2005.

And on April 4, as shown by the monitoring conducted daily by the state price control inspection in the region, retail prices at Volyn gas stations were as follows: - for diesel fuel - from 2.65 hryvnias per liter to 2.90; - for A-76 grade gasoline - from 2.55 to 2.80; - for A-92 gasoline - from 2.75 to 3.0; - for A-95 gasoline - from 2.89 to 3.15 hryvnias per liter.

What caused such changes in fuel market prices? First of all, record world oil prices influenced the fact that Russia, from where Ukrainian oil refineries receive the bulk of their oil, decided to raise the export duty rate on crude oil and petroleum products to 102.6 US dollars per ton starting April 1, 2005. Recall that since February of this year, an export duty rate of 83 US dollars per ton had been in effect for Ukraine.

From April, oil coming from Russia for domestic oil refineries will cost, according to forecasts, 310-315 US dollars per ton (currently the price is 290-300 dollars). In addition, petroleum product pricing will be affected by the fact that the Ukrainian government is changing the principle of paying the excise tax on petroleum products, which will lead to an increase in their cost, since excise is an indirect tax paid by the consumer. Whereas previously excise rates were unified - 60 euros per ton for all grades of gasoline and 30 euros per ton for diesel fuel - now the new version of the State Budget introduces a differentiated rate of 20 percent of the selling price (excluding VAT). This means that at the current price level, the excise on A-95 gasoline should be 75 euros per ton, and on diesel fuel - 35 euros.

Predicting further developments, most experts agree that by mid-April the level of wholesale selling prices for petroleum products may rise by 20-50 kopecks, which will lead to a significant increase in retail prices at gas stations, which is currently being observed. One must also take into account the possible shortage of automobile fuel due to the shutdown for repairs of the Lysychansk and Shebelinsk oil refineries, as well as increased fuel consumption with the onset of spring.

Oil traders supplying fuel to the market promptly reacted to all these factors and raised prices for diesel fuel and gasoline ahead of schedule. The long-standing tradition - raising fuel prices on the eve of and in the midst of agricultural work - judging by everything, will not be broken this year either.

Volodymyr MOVSHUK, deputy head of the state price control inspection in the region.

DISCOUNTED FUEL AT COMMERCIAL PRICE

This spring has turned out to be difficult for agricultural producers, because all the work: fertilizing winter crops, plowing, and sowing have all come due at once. Agricultural enterprises had hoped that at least they would receive discounted fuel on time, which would significantly reduce the cost of the spring field work complex. But from the very first days of cooperation with the operators who were supposed to supply discounted fuel from oil refineries, it became clear that not everything would go smoothly. Of the 12.9 thousand tons of fuel that was supposed to meet the needs of agricultural producers, only 800 tons arrived during March (4.5 thousand tons were expected).

Why did such a situation arise? Operators complain that agricultural enterprises pay poorly for fuel. But agricultural producers, for their part, also have complaints about the operators. The head of the department of agriculture and food of the Ratniv district state administration, Vasyl Sakhno, says:

- We had an agreement on cooperation with the Kovel oil depot (VKF "Kontynium-Ukrresurs"). In total, we were supposed to receive 756 tons of discounted fuel. In March we received only 1 ton 900 kilograms. The funds transferred by our agricultural producers are accumulated by the Kovel oil depot until it collects orders for a railcar shipment of fuel. Individual farmers and small agricultural enterprises of the Ratniv area order small batches of fuel and are forced to wait up to ten days for it.

Extremely troubled by the situation that has developed around discounted fuel is the head of the department of agriculture and food of the Volodymyr-Volynskyi district state administration, Valentyna Onishchuk:

- A few days ago we had a business conversation with the operators of PE "Ukrpetrol" and JV "Alfa-Lutsk", who promised that there would be no disruptions in the supply of discounted fuel. But today they state that they have no discounted fuel for sale, and it will arrive from the plant only when new prices are agreed upon at the government level. But the sowing campaign cannot wait. The district is only eleven percent supplied with fuel.

Those agricultural producers who paid for fuel before April 1 but never picked it up from the operators are also concerned. As assured by Valerii Onopriuk - head of the department of the main administration of agriculture and food, they will still receive their fuel at the old price, that is, at 2 hryvnias 40 kopecks. Problems may arise only for those who prepaid PE "Ukrpetrol". This operator supplies diesel fuel from the Kremenchuk oil refinery, which since April 1 has been offering a price for discounted fuel of 2 hryvnias 80 kopecks. The Nadvirna oil refinery intends to sell discounted fuel at 2 hryvnias 90 kopecks. While negotiations on prices continue, many agricultural producers, disappointed by such support, are forced to delay the sowing campaign.

Olena DUDKEVYCH