Cigarettes and fuel will become more expensive in Ukraine: how much will prices rise?

27 January 12:53

Ukraine continues to implement planned excise tax increases, which directly affect the prices of tobacco products and fuel. In 2026, cigarettes will become more expensive by an average of 2–3.5 hryvnia per pack, and the cost of fuel will increase by 1–2 hryvnia per liter. This was announced by Oleksiy Leonov, a member of parliament and member of the Parliamentary Committee on Finance, Tax and Customs Policy, according to "Komersant Ukrainian"

Why cigarettes are becoming more expensive

According to the deputy, the increase in excise duty on cigarettes is a planned and gradual process that began in 2018. Its main goal is to bring Ukrainian excise rates closer to those of European Union countries.

At the same time, in 2026, it was decided to slow down the pace of the increase.

“This year, the parliament and the government decided to slow down the pace of this excise tax increase. We were supposed to complete this process by 2027, but we extended it until almost 2029, in agreement with our European partners,” explained Oleksiy Leonov.

Thus, the price of cigarettes will rise gradually, without sharp price jumps.

What affects the cost of fuel

As reported by [Komersant] , on January 1, a new stage of excise tax increases on all major types of fuel — gasoline, diesel fuel, and liquefied gas — came into effect . This is provided for by current legislation and is part of a phased plan to increase excise tax rates.

The increase in the tax burden will inevitably affect retail prices at gas stations at the beginning of the year.

How excise taxes on gasoline are increasing

According to the approved schedule, excise tax rates on gasoline are increasing gradually:

from September 1, 2024 — €242.6 per 1,000 liters;
from 2025 — €271.70 per 1,000 liters;
from 2026 — €300.80 per 1,000 liters;
from 2027 — €329.90 per 1,000 liters;
from 2028 — €359 per 1,000 liters.

Thus, in 2026, the excise tax on gasoline will increase by almost €30 per 1,000 liters compared to the previous year.

At the same time, the final amount of the price increase will depend on the market situation and the policies of specific gas station chains.

Commenting on the rise in fuel prices, the deputy stressed that excise duty is not the only factor that determines the final cost at gas stations.

Among the key reasons for the price increase are:

global oil and raw material prices;
logistics costs, which have increased due to constant shelling;
changes in fuel supply routes in the context of the war.

According to Leonov, it is these factors, together with the tax burden, that are leading to a price increase of 1–2 hryvnia per liter.

The impact of excise taxes on public health

The parliamentarian drew particular attention to the social and medical effects of increasing excise taxes on tobacco products.

“The increase in excise duty on cigarettes reduces the number of smokers in our country. This is one of the strategies in the field of health care — not only in Ukraine, but also in the European Union as a whole,” he said.

In the EU, raising tobacco prices is seen as a tool for reducing smoking rates and, consequently, reducing government spending on the treatment of smoking-related diseases.

What consumers can expect

In the coming years, Ukrainians should prepare for:

a gradual but steady increase in cigarette prices;
a moderate increase in fuel prices;
further adaptation of tax policy to European standards.

The authorities emphasize that this approach allows maintaining a balance between the fiscal needs of the state, the fulfillment of international obligations, and the social consequences for citizens.

Дзвенислава Карплюк

Editor