First deputy prime minister of economy of Ukraine Yulia Sviridenko predicts that the retail price of diesel fuel during the month will increase by 5 UAH/liter, gasoline – by 7-8 UAH/liter.
“We see and forecast together with gas station operators that by the end of July the increase will be 5 UAH for diesel and 7-8 UAH for gasoline,” she said on the air of the national marathon on Tuesday.
Sviridenko specified that arithmetically returning to the prewar level of excises on motor fuel and increase of VAT on it may lead to increase of price on diesel fuel up to 8 UAH/liter and petrol – up to 11 UAH/liter. At the same time the accumulated fuel reserves and lack of shortages should not lead to a sharp rise in prices.
“We see that there will not be a sharp rise in price. There are several factors – there is no shortage, there are stocks, the market in Europe is flooded with resources, so there will not be sharp jumps. Much, of course, depends on the price situation in the world, but today we do not expect sharp fluctuations,” she added.
As it was reported with reference to director of A-95 Sergii Kuyun, fuel prices will not rise from July 1, but will rise gradually. According to him, the tax burden on gasoline will increase by 11 UAH / l, 8 UAH / l – on diesel fuel, 3 UAH / l – on liquefied gas.
“Some part of it, at least 2-3 hryvnias per liter will be taken by the network, but diesel will add 100 per cent 5 hryvnias per liter, petrol – 7-8 hryvnias per liter. The price for gas will be the same 3 hryvnias/liter higher,” he predicted in his comments to Energoreforma a few days before the end of June.
Much will depend on the purchase price of petroleum products, most of which are imported. According to Kuyun, if world prices fail, there will be preconditions for them to compensate the increase of tax burden.
In the middle of March 2022, the Rada passed a law on additional tax incentives for business support during the war, aimed, in particular, at keeping fuel prices down. According to it, temporarily, for the period of martial law, a zero excise tax and VAT of 7% instead of 20% were set for fuel.
On September 21, 2022, the Rada passed the bill No. 7668-d on the return of excise taxes on motor fuel, setting them at EUR100 for gasoline and diesel (hereinafter 1,000 liters), EUR52 for liquefied gas, butane and isobutane, and EUR100 for alternative motor fuel and biodiesel.
VAT for all fuels remained at 7%. But according to this law, starting July 1, 2023, fuel taxes return to the prewar level: VAT – to 20%, excise tax on gasoline – to EUR213, diesel fuel – to EUR140 per 1000 liters.
