Why Ukrainians Should Prepare for Price Hikes Starting September 1st and How It Will Affect Fuel Quality
Changes on the Horizon
Starting in September, Ukrainians should expect a rise in prices for food and other goods. This is due to the increase in excise taxes on automotive fuel approved by the Verkhovna Rada on July 18. This move has been anticipated for several months, and now the time has come.
Excise Tax Increase
The bill outlines a phased increase in excise taxes, reaching its peak in 2028. By then, the cost for 1,000 liters of fuel will be:
- Gasoline – €359
- Diesel – €330
- Liquefied gas – €70
Impact on Consumers
Dmytro Lyoushkin, founder of the “Prime” group, told UNIAN in an interview that Ukrainians will feel the initial effects of the increase as early as September 1st. Prices for gasoline and diesel will rise by 1 hryvnia per liter, and gas will become 3 hryvnias more expensive. However, this is only the beginning. By the end of September, prices are expected to change as follows:
- Gasoline will increase by an additional 1.5 hryvnias
- Diesel by 2 hryvnias
- Gas by 5 hryvnias
Price Implications
The rise in fuel prices will lead to higher costs for goods, as transportation expenses from the producer to the retailer are included in the final product price. The ongoing power outages in Ukraine create additional costs that producers will also pass on to consumers.
Dmytro Lyoushkin noted that the lack of electricity has the most significant impact on the economy. The cost of energy produced by a generator is ten times higher than that purchased from the state. This means that basic products, such as bread, will become more expensive than, for example, sausage.
Fuel Quality
Increasing excise taxes can also affect the quality of gasoline. Gas stations may start using various tricks to not raise prices faster than their competitors and not lose customers. Lioshkin warns of possible negative consequences, such as tax evasion and a decrease in fuel quality.
Therefore, Ukrainians should prepare for price increases on food products and other goods starting in September, as well as be ready for potential deterioration in gasoline quality. Stay tuned for updates to stay informed about the latest events.
