A cap will be placed on fuel cashback: how it will work
14 March 00:23
The government plans to impose restrictions on fuel cashback. Drivers will be able to receive only a fixed amount per month, regardless of the amount of fuel purchased.
This was reported by [Komersant], citing a comment by Cabinet of Ministers communications officer Ivan Palchevsky under a Facebook post.
“Here’s a great example of the difference between your own money and someone else’s. Almost all banks limit cashback to 500 UAH per month. Because it’s their money,” wrote Gleb Vyshlinsky, head of the Center for Economic Strategy, on Facebook.
He suggested that the government aims to subsidize fuel without limits for “the unfortunate owners of gas-guzzling cars.” According to him, “because it’s someone else’s money.”
“Under this program, a limit of 1,000 UAH per consumer per month is planned,” Ivan Palchevsky wrote in response.
The program will run until May 1. Cashback will be credited at all gas stations that join the program.
How much will be refunded for fuel
The program provides the following cashback percentages:
- 15% – for diesel fuel
- 10% – for gasoline
- 5% – for autogas.
Why the government introduced fuel cashback
Due to the war in Iran, fuel prices in Ukraine have skyrocketed. Gasoline and diesel have become significantly more expensive at gas stations—on March 13, diesel reached 82 hryvnia per liter.
Despite this, the government is in no hurry to curb this rise by lowering fuel taxes.
The Cabinet of Ministers explained that reducing excise taxes and VAT on fuel would hit the state budget, which is already operating under wartime conditions. Instead, the government chose a different path—to compensate drivers for part of their expenses through cashback.
