Small gas stations in Ukraine are under threat due to the crisis in the oil market

Some small gas stations have already shut down due to unprofitability.

The number of gas stations in Ukraine may decrease significantly, primarily affecting small chains. The market is being impacted by the energy crisis and instability in global oil prices.

This was stated by Andriy Pyvovarskyi, CEO of the WOG network, in an interview with Liga.net.

The process of reducing the number of gas stations has been ongoing for several years, but the current situation could significantly accelerate it.

“The market is heading toward consolidation—small chains will gradually disappear,” he noted.

The main problem is the market structure. In Ukraine, most gas stations operate as retail businesses, whereas globally they are often affiliated with large oil refining companies.

In fact, the state-owned “Ukrnafta” remains the only major player in oil refining, while others are forced to operate under conditions of fierce competition and dependence on imports.

What will change

Experts predict a major market transformation:

• the number of small gas stations will decline;
• mini-chains linked to sole proprietorships will gradually disappear;
• the market will consolidate around approximately 10 major operators;
• competition among major players will intensify.

At the same time, some of the gas stations that have already been built may never open or remain closed due to unprofitability.

Prices for A-95 gasoline and diesel have fallen in Ukraine.

Ukrainian gas station chains partially lowered fuel prices as of April 18.