Ukrnafta increases its share on retail market of oil product sales to 7%-8%

MOSCOW. Oct 8 (Interfax) - Ukrnafta's chain of filling stations currently accounts for around 7% to 8% of the Ukrainian retail fuel sales market, Ukrainian media reported, citing PJSC Ukrnafta's Deputy Director for Commercial Operations Sergei Fedorenko.

"While the chain covered 2.5% to 3% of the market in 2022, the share increased to 4.8% to 5% in 2023, and the market share of Ukrnafta's chain is now 6.8% to 7%. And along with Glusco filling stations, we are covering 7% to 8% of the fuel retail market," he said.

As a whole, this is occurring amid the falling Ukrainian market, which is due to the shrinking population and saving money by them, Fedorenko said.

Ukrnafta cannot really be proud of a large set of services, but at the same time, not every client is willing to overpay for them, he said.

"Our colleagues on the market include new major filling stations and additional services in the price. This raises the cost per liter of fuel. We decided to limit ourselves to a good but basic service. Thus, we can sell the same quality fuel as our colleagues do, but cheaper," he said.

Ukrnafta is also involved in many tenders, and the sales for companies and organizations account for a substantial part of its sales.

"The State Emergency Service, the National Police, and ambulances in all cities are being refueled at our [filling stations]. We are also actively operating on commercial markets and are fueling shipping companies, retailers and farmers, and major metallurgical companies. We are currently selling around 30 million liters per month only to businesses," Fedorenko said.

Ukrnafta is the largest oil producing company in Ukraine, which operates a nationwide chain of filling stations. The company took over management of Glusco's assets in March 2024 and operates a total of 545 filling stations, which includes 460 of its own and 85 under management.

Naftogaz of Ukraine is Ukrnafta's largest shareholder with a stake of 50% plus one share. The Ukrainian supreme commander-in-chief's headquarters decided in November 2022 to transfer to the government a share of the company's corporate rights held by private owners, while the company is now managed by the Defense Ministry.