• Українською
  • Government has signed a Memorandum with the Ukrainian Oil and Gas Association on price stability
    Ministry of Economic Development, Trade and Agriculture of Ukraine, posted 05 April 2021 12:43

    On April 2, the Cabinet of Ministers and the Ukrainian Oil and Gas Association inked a Memorandum of Understanding on creating a favorable environment, developing fair competition in the Ukrainian oil market and meeting consumer needs for the period of quarantine and restrictions.

    The relevant document was signed by the Minister of Economic Development, Trade and Agriculture of Ukraine Ihor Petrashko on behalf of the Government.

    "Over the past few weeks, we have held a number of meetings and discussions with gas station networks. The signing of this memorandum is evidence that there is mutual understanding between the state and business: we have arrived to compromise decisions. We must work in synergy to ensure price stability in the oil products market," said Ihor Petrashko.

    The parties joined efforts to create favorable conditions for the development of the oil products market on the basis of legality, transparency, fair competition and social responsibility; development of partnership relations between business and the state; prevention of violations of the law, acquisition and use of illegal advantages in competition.

    Under the terms of the Memorandum, the Ukrainian Oil and Gas Association will continue to promote the principles of transparent and fair competition and payment of taxes to all market participants in full, as well as promote compliance with the principles of socially responsible business to provide consumers with quality petroleum products at market prices.

    The Association will provide the Cabinet of Ministers of Ukraine with information of a non-commercial nature on the forms, types and places of illegal circulation of fuel and places of activity of entities that work with signs of violation of the law.

    The Government will take measures to combat the illegal production and circulation of fuel (including the illegal activities of enterprises engaged in an incomplete cycle of oil refining). The Cabinet of Ministers of Ukraine will also promote the diversification of sources of supply from both domestic and foreign refineries (without allowing any manifestations of discrimination), free pricing in the market of petroleum products.

    For their part, the member companies of the Association undertake to continue to pay taxes in full, to form the price of petroleum products on the terms of free competition and taking into account the situation on world markets.

    Background

    The Ukrainian Oil and Gas Association is an industry association representing the interests of the largest players in the oil and gas market. Today the Association consists of 14 largest wholesale, retail, mining, refining enterprises representing national, international, private and state businesses, Ukrgazvydobuvannya extraction and refining enterprise, as well as wholesale suppliers of oil products. The members of the Association provide about 50% of retail trade and about 80% of the market for imports of petroleum products.