Rising fuel prices: experts point to more serious problems
19 July 2024 10:46
ЕКСКЛЮЗИВ
The Verkhovna Rada has adopted amendments to the Tax Code and increased excise duties on fuel . As of 1 September, the price of petrol for Ukrainians will be UAH 57.42. Diesel will cost UAH 55.58, and autogas – UAH 32.84. The explanatory note to the document adds that the implementation of the act will increase budget revenues.
European Solidarity MP Oleksiy Honcharenko called the amendments to the Tax Code a disgrace. Interviewed by Kommersant Ukrainian 
are more reassuring and point to more global risks.
Economist Oleg Pendzin reassures that the increase is insignificant. Moreover, the government has managed to keep petrol prices stable for two years.
“Let’s remember how much we paid for a litre of fuel in June-July 2022. 60 hryvnias per litre. There was not a single penny of value-added tax back then. There was also not a single penny of excise tax. Then the government introduced 7% VAT and 100 euros per tonne of excise duty. And the price of fuel dropped to UAH 50 per litre.
At the same time, the government refunded all taxes from 1 July 2023. And we have been at the same price level as in July 2022 all the time,”
– said Oleg Pendzin.
Pendzin added that Ukraine today is completely dependent on the price of petroleum products on the world market. The excise tax increase is insignificant. The gradual increase is in line with European countries. As for the forecasts for 2028, the economist does not undertake to make any predictions. He says it is not yet known what the hryvnia to dollar ratio will be.
DO THEY WANT TO DISTRACT UKRAINIANS FROM MORE GLOBAL ECONOMIC PROBLEMS?
Andriy Dligach, Doctor of Economics, in a commentary to Kommersant Ukrainian
“Of course, petrol prices may rise. This is evident from the increase in excise taxes. This is unpleasant for car owners, logistics companies and those who depend on logistics, says economist Andriy Dligach.
“Other factors are much more important. These include a shortage of labour, expensive credit resources, business risks, and, accordingly, costs. The fact that they are trying to concentrate us around such primitive and obvious things is a psychological way to divert attention from what is really happening in the Ukrainian economy,”
– said Andriy Dligach.
The Ministry of Economy of Ukraine has reported a slowdown in economic growth. One of the main factors is rolling blackouts due to electricity shortages. At the same time, GDP growth in the first half of the year is estimated at 4.1% [±1%] compared to the same period last year.
In other news, Ukraine has resumed unscheduled fuel quality checks at petrol stations.
Author: Anastasia Fedor
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