Zelenskyy signs bill on increasing excise taxes on fuel into law

President Volodymyr Zelenskyy has signed a law increasing the excise tax rates on fuel to match the levels set by the European Union. The law, numbered 11256-2, was approved by the Verkhovna Rada on July 18 and came into effect on September 1, according to the document's details on the parliament's website.

The bill aligns Ukraine's excise tax rates with the minimum levels established by the European Directive 2003/96/EC. The minimum excise tax rates are as follows:

For gasoline: 359 euros per 1,000 liters

For diesel fuel: 330 euros per 1,000 liters

For liquefied gas: 125 euros per 1,000 kilograms (approximately 68 euros per 1,000 liters)

The increase in excise taxes in Ukraine will be phased in over five years.

Starting from September 1, 2024, the excise tax rates have been raised as follows:

For gasoline: from 213.5 euros per 1,000 liters to 242.6 euros

For diesel: from 139.5 euros to 177.6 euros

For liquefied gas: from 52 euros to 148 euros

For alternative fuel: from 162 euros to 184.08 euros

According to the authors of the bill, the price of gasoline at gas stations will increase by approximately 1.50 hryvnias ($0.036) per liter, diesel by 1.95 hryvnias ($0.047), and liquefied gas by 5.8 hryvnias ($0.14) per liter.

The next phase of the excise tax increase on fuel is planned for 2025.

The additional funds generated from the excise tax will be directed towards the military.

In July 2024, the daily import of gasoline into Ukraine increased by 30%.

The cost of liquefied gas on the Ukrainian Energy Exchange (UEX) exceeded 50,000 hryvnias ($1,215) per ton in the last week of August.