Gasoline and diesel fuel prices in Ukraine will sharply increase from July 1, 2024

The Verkhovna Rada of Ukraine has passed in the first reading a bill that stipulates a significant increase in the prices of gasoline and diesel fuel starting from July 1, 2024. This measure will affect both industrial consumers and private individuals at gas stations. According to forecasts, gasoline prices will rise by at least 1.5 UAH/l, and diesel fuel by 2.0 UAH/l. This will be the third price increase since the beginning of the full-scale invasion.

Over the past few years, fuel taxes in Ukraine have been raised twice. Initially, VAT was increased to 7%, and the excise duty was set at 100 euros per thousand liters. In July 2023, the excise duty on fuel was set in the range of 140 to 213 euros, and VAT was increased to 20%.

In May 2022, the average fuel price was 25 UAH/l, and now it has almost reached 60 UAH/l. It is important to consider that fuel is a significant component of the cost of many goods. The social consequences of rising prices for gasoline, diesel fuel, and gas require separate discussion, as the end consumer will ultimately bear the cost of this increase.