After President Volodymyr Zelensky signed a law on increasing excise taxes on fuel, the Ukrainian oil product market is expecting a gradual increase in prices. However, as Leonid Kosyanchuk, CEO of the gas station network, notes, this price increase will not be instantaneous and sharp, which gives consumers some time to adapt.
According to Kosyanchuk, the increase in excise taxes on gasoline, diesel fuel, and liquefied gas creates the prerequisites for price increases. It is expected that gasoline will increase in price by approximately 1.5 hryvnias per liter, diesel fuel by 2 hryvnias, and liquefied gas by 5 hryvnias. The latter falls out of the category of affordable alternative fuels, which will hit the most vulnerable segments of the population who used it as a cheap alternative to gasoline.
Despite this, the expert believes that a significant increase in prices in the coming days is not worth expecting. On the eve of the introduction of the new excise tax, market operators brought significant reserves of petroleum products into the country. “Today, everyone is filled to the brim,” says Kosyanchuk, emphasizing that the price increase will probably occur only at the end of September, when the reserves of cheaper fuel will be exhausted.
On September 2, 2024, President Volodymyr Zelensky signed a law that provides for a gradual increase in excise tax rates on fuel until 2028. The new rates will be 359 euros per 1,000 liters of gasoline, 330 euros per 1,000 liters of diesel fuel, and 70 euros per 1,000 liters of liquefied gas.
