From July 1 this year, Ukraine will return the full amount of value added tax (VAT) on automobile fuel, which was reduced from 20% to 7% after the full-scale invasion of the Russian Federation. The abolished excise tax on fuel will also be restored.

According to estimates published by the Union of Ukrainian Entrepreneurs (UUE), as a result of the return of the full amount of taxes on automobile fuel, a liter of gasoline at Ukrainian gas stations may rise in price by UAH 12, diesel – by UAH 8, and autogas – by UAH 3.

Oil products market expert Leonid Kosianchuk in a comment to Obozrevatel predicts a similar rise in price.

"You take the current price and add UAH 10-11 for gasoline, UAH 7-8 for diesel and UAH 3.5 for gas," the expert voiced his forecasts.

According to him, gasoline after July 1 will cost UAH 56-57 per liter, diesel fuel will rise in price to UAH 50-52.

As of the beginning of June, the average price of a liter of A-95 in Ukraine is 46 UAH. In a month, its cost may increase to 58 UAH.

The return of the excise tax and full VAT (20%) was explained by the chairman of the tax committee of the Verkhovna Rada Danylo Hetmantsev by the fact that the reduction of this tax to 7% hit budget revenues hard.

To recap, from July 2023, Ukraine will return 20% VAT on all types of fuel. Now this tax is 7%.

Read also:

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