Ukrainians were warned: starting July 1, gas station prices will rise

Ukrainians were warned: starting July 1, gas station prices will rise

The largest chains of gas stations have warned that from July 1, due to the restoration of the 20% VAT on fuel, the prices of gasoline and diesel fuel are guaranteed to rise. This is discussed on the website of the Oil and Gas Association of Ukraine.


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Rising prices

Its participants believe that the increase will lead to the tenization of the market, because drivers will begin to fill up with “illegals” en masse. Therefore, they offer an alternative to leave the VAT at the current level of 7%, and instead raise the excise tax rate to 180 euros per 1000 liters for all petroleum products.

The reduction of VAT on fuel from 20% to 7% at the beginning of 2022 was required to stabilize the market in the conditions of a full-scale war. At the same time, it made it possible to minimize tax frauds in the form of “packages”.

Read: Hetmantsev said when VAT on fuel will return to 20%

“With the return of VAT to 20% from July 1, the financial attractiveness of “packages” is expected to increase, their total volume will increase significantly. Excise tax on fuel, in contrast to VAT, is administered by the state much more effectively,” – say the association’s members.

According to the estimates of the “A-95” consulting group, in the case of the return of pre-war taxes, gasoline will rise by UAH 11.2 (from UAH 47.17 to UAH 58.35/l); diesel — by UAH 7.7 (from UAH 47.43 to UAH 55.10/l); autogas — by UAH 2.6/l (from UAH 21.77 to 24.40/l).

If you raise excise taxes and leave VAT at the level of 7%, the prices of gasoline and diesel will hardly change, while autogas will become slightly more expensive, but it will still be twice as cheap as gasoline.

“Such a model will allow the state to receive an even higher level of revenues to the country’s budget than it plans to receive after returning to the full rates of excise taxes and VAT,” the association believes.

Source: Ministry of Finance

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