Most agricultural companies in Ukraine currently have fuel reserves sufficient for about one month of operations, allowing them to pass the active phase of spring fieldwork without major disruptions, ProAgro Group reports.

According to Pavlo Fesiuk, Chief Financial Officer of AgroVista, farmers have prepared for the season by forming diesel fuel reserves, taking into account both storage capacity and security risks.

These reserves are expected to cover roughly a month of intensive agricultural work, including crop fertilization before the start of the sowing campaign.

At the same time, farmers expect geopolitical tensions affecting the fuel market to ease in the near future. Market participants are closely monitoring developments in the Strait of Hormuz, which plays a key role in global oil product supplies.

Fesiuk noted that the market expects fuel prices to stabilize within the next month, as exchange quotations have already stopped rising following recent maritime events.

He also emphasized that European fuel producers currently have sufficient stocks of both raw materials and finished products, particularly at refineries in Romania and Bulgaria.

“There is enough raw material at the plants, and sufficient finished fuel as well,” he said.

According to Fesiuk, part of the recent price increase on the fuel market has a speculative nature, since there is currently no physical shortage of fuel.

However, the situation could change if disruptions in crude supply continue. If stable supplies are not restored by the end of March, a real fuel deficit could emerge on the market.

Earlier it was reported that the Antimonopoly Committee of Ukraine (AMCU) launched monitoring measures regarding the situation on the petroleum products market amid rising fuel prices.

Source: Latifundist.com