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Autogas switches from Ukraine to Lithuania as Russia gains market: EADaily

Deliveries of Russian autogas through Lithuania to Ukraine fell by almost half in mid-March. Local authorities check the owners of railway tanks. In Ukraine, meanwhile, the price of fuel is rising.

In March, there is a decrease in the supply of liquefied petroleum gas (LHG) from Lithuania to Ukraine. According to the publication enkorr, the weekly volume for customs clearance decreased from 2.85 thousand tons in January – the first half of March to 1.35 thousand tons on March 13-19.

A representative of a major supplier explained to the publication that the decline is due to the sanctions: “Now the owners of the wagons are being checked for their connection with Russia. If at least 1% of the company belongs to a Russian citizen, the Lithuanian railway may refuse to clear the cargo.”

Attention to carriers has led to an almost complete reduction in rail deliveries from Russia to Lithuania, traders say. Enkorr provides data that there were no deliveries from March 1 to March 22, and 258 tons were accepted on March 22 and 23. At the same time, about 5 thousand tons of LPG were delivered to Lithuania in February, part of which was sent to Poland. The Ukrainian edition cites Eurostat information that Russia is the only channel for the supply of LPG to Lithuania.

The reduction in shipments immediately led to an increase in autogas prices in Ukraine – by 10.5%. According to enkorr, the price of LPG at the Ukrnafta auction rose to UAH 33.6 thousand (about 70 thousand rubles).

As reported EADaily Despite the statements of the Baltic countries about the refusal of Russian oil products and gas, the supply of one type of fuel from Russia continues to grow – autogas.

“Russian exporters more than doubled sales of liquefied petroleum gas (LPG) to the Baltic countries in 2022, some of which were sold to Ukraine, according to data from three trading and handling sources covering the region,” Reuters reported.

According to the agency, Russia increased its total sales of autogas to Latvia, Lithuania and Estonia from 159,000 tons to 331,000 tons. This growth is due to the fact that Ukraine and some other countries that have refused to buy fuel from Russia directly receive LPG through the Baltic States.

The reason for the supplies is that liquefied gas from Russia is much cheaper than supplies from other countries. The difference is $150-$200 per ton compared to Poland and Romania.

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