Effective procurement: fuel and lubricants for the Armed Forces have become cheaper than the average market prices

In 2024, as compared to 2022-2023, procurement of fuel and lubricants for the Armed Forces of Ukraine became more transparent and efficient. This conclusion was made by specialists of the Department of Internal Audit of the Ministry of Defense after checking the procurement procedures conducted by the Department of Resource Supply (hereinafter – DRZ) and the State Enterprise of the Ministry of Defense of Ukraine “State Rear Operator”.

The Ministry of Defense of Ukraine informs about this.

“The procedures that DOT specialists began to apply in 2024 made it possible to make the procurement process more transparent and improve its level of efficiency. Thanks to this, the DOT purchased PMM at prices lower than the average market, which allowed the Ministry of Defense to save significant funds,” said the director of the Internal Audit Department, Colonel Oleksandr Tytkovskyi.

In particular, it was analyzed that in 2022-2023 DRZ specialists conducted purchases without regulated and substantiated approaches to determining the size of the expected cost of fuel and lubricant materials. This indicator was determined on the basis of the provided price offers of suppliers, with whom contracts were subsequently concluded. Taking into account the absence of competitive procurement procedures, this led to an overestimation of the cost of purchased products.

For its part, the DOT Ministry of Defense uses a regulated and justified approach to determining the size of the expected cost of the PMM. In addition, the “State rear operator” ensured the conduct of competitive procedures using the electronic procurement system in 97% of cases.

Thanks to this, price overpricing in the purchase of fuel and lubricants has not been established. Moreover, this indicator was lower than the average market prices. And according to the results of the auctions, the actual prices were lower than the announced size of the expected value by an average of 5.4%.

“The DOT’s implementation of competitive procedures for the purchase of fuel and lubricants from the beginning of 2024 to September ensured budget savings in the amount of over 867 million hryvnias. At the same time, the expenses for the activities of the DOT in this direction were reduced to less than UAH 60 million,” stated Colonel Oleksandr Tytkovskyi.

As ArmiyaInform reported, the DOT purchased dyed diesel fuel for the needs of the Armed Forces.