Returning of pre-war taxes: fuel

The authorities plan to return the value-added tax (from 7 to 20%) and excise duties on fuel to the level of February 2022 from July 1. We will remind you that when they were canceled last year in March, the prices of gasoline and diesel fuel were reduced by UAH 10/l.

With the return of pre-war taxation, consumers can expect a significant increase in fuel prices:

• gasoline – by UAH 11.2/l: from UAH 47.17/l to UAH 58.35/l;
• diesel – by 7.7 UAH/l: from 47.43 UAH/l to 55.1 UAH/l;
• LPG – by UAH 2.6/l: from UAH 21.77/l to UAH 24.4/l.

(data: “A-95 Consulting Group”, Forbes.ua)

The return of the tax burden to the level of February 2022 will also negatively affect the value of other goods and services. For example, food products may become more expensive, because the increase in logistics costs affects their cost price.