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The Ministry of Energy to create a system of minimum oil and oil products reserves

The Ministry of Energy has prepared a bill on the creation and functioning of a system of minimum oil and oil products reserves (MOOR) in Ukraine, as well as the regulation of relations in this area.

The bill determines the MOOR creation from 2023, Deputy Minister of Energy Maksym Nemchynov reported in a blog on Economichna Pravda (Economic Truth from Ukrainian).

The Slovak model of minimum reserves was adopted as a baseline model and gained support from the EU Energy Community experts.

According to it, under the supervision of the authorized body, a special agency is established. Its functions will include owning and managing the MOOR and ensuring their storage. According to the European methodology, the MOOR is determined at the level of 90 days of the average daily import of oil and oil products.

Based on the actual capacity of Ukrainian refineries, the following structure of the MOOR is being considered: oil—30%, oil products—70%. At the same time, the reserves of motor gasoline and diesel fuel were determined in accordance with the structure of their actual consumption in a ratio of 38:62.

The source of funds for creating the agency and the MOOR is provided by the state fund for financing MOOR that is supposed to be created as part of the special state budget fund.

The fund is planned to be replenished at the expense of 6% excise tax on fuel produced in Ukraine and imported, as well as 100% special duty on heavy distillates and liquefied gas imported from the Russian Federation.

Nemchynov specified that more than 40% of gasoline comes to Ukraine from Belarus, and about 70% of diesel fuel comes from Belarus and the Russian Federation. Due to the tough dependence on the import of motor fuel, individual traders and companies independently decided to create reserves for force majeure.

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