Ministry of Economy expects reduction in price of gasoline, diesel fuel by UAH 5-7 on Friday

Fuel prices in Ukraine will drop by UAH 5-7 per liter on Friday, March 18, due to the abolition of the excise tax on fuel by the Verkhovna Rada at the initiative of the government and the reduction of the VAT rate from 20% to 7%.

"Now diesel fuel will cost UAH 5 cheaper (decrease from UAH 44.90 to UAH 39.96 per liter). Gasoline will cost over UAH 7 cheaper (decrease from UAH 43.52 to UAH 35.76 per liter)," the department reported in Telegram on Friday night.

The Ministry of Economy notes that thanks to this, it will be possible to accumulate enough resources for the sowing campaign and the transportation of critically needed goods, including food.

As reported, simultaneously with the excise zeroing and VAT reduction, the Cabinet of Ministers of Ukraine increased logistical and other costs when calculating the average cost of gasoline and diesel fuel, on the basis of which the marginal price for sale through the filling station network is set. According to the Resolution of the Cabinet of Ministers of Ukraine No. 249 dated March 11, 2022, if previously logistics and other costs in the calculation amounted to $27 per tonne, now logistics costs have been increased to $50 per tonne. Other costs are also introduced, provided for in the foreign economic agreement, in the amount of $150 per tonne.

This will allow market operators to import fuel from new import destinations instead of Russian and Belarusian ones.

Source: www.en.interfax.com.ua