Threefold increase in excise tax on autogas: how the price of fuel will increase at gas stations in Ukraine

The tripling of the excise tax on liquefied gas to 170 euros per 1,000 liters will increase the retail price at gas stations by 3 hryvnia per liter.

If the excise tax on autogas is tripled, announced in the Verkhovna Rada on December 5, its price at gas stations will increase by 8 percent and exceed 40 hryvnia per liter. This was stated by the president of the expert association, Stanislav Batrachenko, in a comment to Forbes.

As the chairman of the parliamentary tax committee, Daniil Getmantsev, stated the other day, if the excise tax on autogas increases from 52 euros per 1000 liters to 160-170 euros, the price of autogas in retail trade will increase by 3 hryvnia per liter, Batrachenko calculated.

According to the private publication Enkorr, the cost of autogas now ranges from 32.98 to 39.96 hryvnia per liter.

In case of such an increase in SCT, the new price corridor will be from 35.98 hryvnia to 42.96 hryvnia per liter.

The head of the liquefied gas association emphasized that the European directive recommends 68 euros per 1000 litres.

“If the Special Consumption Tax is increased to this level, stele prices will increase by 30-40 kopecks per liter,” he said.

Let’s add that, according to Getmantsev, the revenue from excise taxes and VAT to the Ukrainian budget in 2023 will amount to approximately 60 billion Hryvnia.

“The only argument for why the fuel tax was previously low was that there were once more powerful lobbyists in the LPG market than in the gasoline market. The rate needs to be energy intensive. If we apply this logic with an interest rate of 213 euros per 1000 liters of gasoline, the gas rate should be 160-170 euros. This is Europe.” It is an application in ,” said Getmantsev.

Let us remind you that as of July 1, 2023, fuel taxes in Ukraine will return to the pre-occupation level. For this reason, prices at gas stations have increased rapidly. This trend continues for the third month in a row.

How Focus It had previously reported that fuel prices were significantly affected by the announcement of the NBU exchange rate.

Source: Focus

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