The Rada has approved an increase in excise duties on fuel. What will happen to diesel and gasoline prices this fall?

On July 18, the deputies voted for bill 11256-2, which provides for the establishment of new excise tax rates on fuel (to bring them closer to the minimum set in EU countries).

Thus, starting from September 1, excise taxes on fuel will increase by 14-217% and will continue to rise annually until 2028.

According to the Ukravtoprom association, the current excise rate for gasoline is €213.5 per 1000 liters, for diesel - €139.5, for autogas - €52. Whereas the provisions of European standards provide for minimum excise tax rates of €359 per 1000 liters for gasoline, €330 per 1000 liters for diesel fuel, and €68 per 1000 liters for liquefied gas (it is interesting that in the amendments to the second reading, the rate for liquefied gas is inexplicably indicated at €250 per 1000 liters).

Considering the information from the Tax Foundation analytical center (as of mid-2023), the lowest excise taxes are in Bulgaria, Hungary, Romania, Malta, and Poland, while the highest are in Germany (€670/1000 liters for gasoline and €490/1000 liters for diesel fuel).

Forbes has calculated the increase in fuel prices taking into account the rise in excise tax (excluding changes in oil prices, exchange rates, and demand) from September:

• gasoline - by 1.5 UAH/liter;
• diesel - by 2 UAH/liter;
• autogas - by 6 UAH.

The Ministry of Finance noted that the implementation of the bill will provide additional revenues to the state budget in the second half of 2024:

• from fuel sales operations - by an average of 1.6 billion UAH per month. Of these, 1.3 billion UAH from excise tax and 292 million UAH from value-added tax;
• from operations on the sale of intermediate products - by 4.5 million UAH per month from excise tax.