Ukrainian President Volodymyr Zelensky has signed a law providing for an increase in fuel excise taxes. This was announced by MP Yaroslav Zhelezniak. According to him, the law will come into effect on September 1, after publication in the official publication, which is expected to take place today or tomorrow.
New excise tax rates
According to the document, excise tax rates on fuel will gradually increase until 2028 and will be as follows:
- Gasoline: 359 euros per 1000 liters
- Diesel fuel: 330 euros per 1000 liters
- Liquefied gas: 70 euros per 1000 liters
History of the issue
On July 18, the Ukrainian Parliament adopted in the second reading a bill providing for an increase in excise tax on fuel. It is expected that as a result, diesel and gasoline will increase in price by 1.5-2 hryvnias per liter. Additional revenues from the excise tax will be used to finance the needs of the Armed Forces of Ukraine.
Economic consequences
The Chairman of the VRU Committee on Finance, Tax and Customs Policies, Danilo Hetmantsev, stated that the increase in excise taxes may lead to price increases, but it should not be so significant as to significantly affect inflation.
However, the founder of the logistics company group “Prime,” Dmytro Lioushkin, believes that the increase in fuel prices will cause an increase in prices for all goods. This is because fuel costs are embedded in the cost of all production, and in conditions of mass power outages, businesses are forced to use generators, which further increases costs.
