THE ROLE OF THE DOMESTIC AUTOMOTIVE FUEL MARKET FOR THE NATIONAL ECONOMY SYSTEM

Abstract

Fuel and energy resources are a basic element for the functioning of transport, the agricultural sector, production, and the defense sector since disruption of the stability of this market creates risks for macroeconomic balance, state security and social stability. Between 2022 and 2024, Ukraine’s domestic automotive fuel market underwent significant transformations driven by economic instability, infrastructure destruction, inflationary dynamics, rising energy prices, and prolonged geopolitical tensions. The destruction of the Kremenchuk oil refinery, the country’s only large-capacity processing facility, resulted in critical import dependency, positioning the fuel sector at the core of national energy and security challenges. This article investigates consumer behavior shifts and adaptive responses among households and businesses, including reduced private vehicle usage, gradual transitions toward electric mobility, and conversions to LPG. Particular attention is paid to the impact of digitalization, including the use of mobile applications for expenditure tracking, participation in loyalty programs, and engagement with online platforms.The study also examines the role of state and municipal initiatives aimed at expanding electric vehicle infrastructure, introducing biofuel quotas, and promoting decentralized energy generation. The research methodology incorporates econometric modeling, statistical analysis, and sociological approaches, enabling the identification of regionally and socioeconomically differentiated demand structures. Additionally, the study outlines potential scenarios for a low- carbon transport transition in the context of EU energy integration policies. Decentralization of the energy system, growth in domestic gas production as well as synchronization with the EU energy system create the basis for long-term energy sustainability. The findings are of both practical and strategic relevance for improving public energy policy and supporting business adaptation strategies in an environment of ongoing uncertainty.