Coalition Plans To Restore Import Duties On Oil Products

The coalition agreement says duties will be 20-25 Euros/tonne. This comes after a steep decline in oil refining since last year’s decision to drop import duties. Concorde Capital: The duties, if implemented, will support Ukraine’s refineries, which have been suffering from tough competition with imports since cancellation of duties in May last year. We expect the duties would trigger only a slight one-off permanent increase in retail prices, 4% max. Yet, the effect on the margins may differ accross the market participants. In addition, domestic retailers would have to substitute high-quality imported fuel with locally produced gasoline, so on average product quality on the market would decrease.