The shadow fuel market and taxes: results of BEH inspections

2 March 18:41

The Economic Security Bureau of Ukraine has announced a significant reduction in the number of illegal gas stations in several regions and additional revenues to the budget as part of a campaign to combat the black market in fuel.

This was announced by the deputy director of the BEB, Pavlo Buzdygan, according to Interfax-Ukraine, as reported by "Komersant Ukrainian".

What the BEB says

According to the official, in November 2025, the Bureau identified a problem in the oil and gas sector and received information from the Oil and Gas Association of Ukraine about 421 gas stations with signs of illegal activity. In addition, the BEB identified a number of other facilities — 538 in total.

The highest concentration of shadow gas stations was recorded in:

  • Lviv region — 143,
  • Odesa region — 60,
  • Kyiv region — 40,
  • Dnipropetrovsk region — 32,
  • Kyiv city — 10.

What are the results

After inspections, dismantling, and seizure of equipment, as of January 2026, according to the BEB:

  • in Kyiv, the number of illegal gas stations has been reduced to zero;
  • in the Lviv region — to 17;
  • in the Odesa region — to 7.

The Bureau also reports an “additional fiscal effect,” but does not specify the exact amounts of revenue.

The fuel market is traditionally considered one of the most sensitive to shadow schemes due to high excise taxes and a significant share of cash transactions. Illegal gas stations can operate without licenses, in violation of safety standards, or without paying taxes.

The BEB emphasizes that it is transitioning to a new operating model with a focus on areas that cause the greatest budget losses. The de-shadowing of fuel is among the priorities.

Марина Максенко
Editor

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