Fines for Selling Gasoline Without Bioethanol: What Will Change for Gas Stations from January 1

Starting January 1, gas stations in Ukraine that sell gasoline without bioethanol will face fines of 18,168 hryvnias for every thousand liters. This is due to the parliament not supporting the extension of the transitional period for selling gasoline exclusively with the addition of alcohol. As a result, there is a risk of a shortage of alcohol gasoline in the market, as market participants hoped for another postponement of the new rules and therefore did not import or produce such a product.

This is reported by AgroReview

Legislative Changes and Market Risks

On January 17, a vote took place on bill No. 13219, which aimed to once again postpone the penalties for selling gasoline without at least 5% bioethanol, but there were not enough votes to pass the law. It is worth noting that a law requiring the addition of bioethanol to gasoline came into effect on May 1, but penalties for violations were suspended. Thus, while the regulation was formally in effect, it remained inactive.

European countries from which Ukraine imports gasoline have long implemented the E10 standard with an alcohol content of 7-10%. For exporting fuel with the E5 standard, producers would need to create separate blending and logistics lines, which would increase the cost of gasoline. In Ukraine, blending was not organized due to risks associated with the war, and fuel was delivered directly to gas stations to avoid significant losses in the event of shelling.

In June, the parliament already postponed fines for selling gasoline without bioethanol until January 1, 2026. The latest legislative initiative proposed a new postponement until July 1, 2026, as well as a transition to the European E10 standard. However, after the unsuccessful vote, the bill was sent for a repeat second reading, which, according to experts, may not take place until at least January 15, 2026. Thus, for at least two weeks, gas stations may be fined for non-compliance with the new requirements.

In addition to the fine of 18,168 UAH for every 1,000 liters of gasoline without bioethanol, there are also sanctions ranging from 227,100 to 333,080 UAH for failing to provide information to government authorities about the alcohol content in gasoline.

Potential Shortage and Market Position

Despite the formal return of fines, most market representatives and experts do not expect a sharp fuel shortage or significant problems for consumers. There is a consensus in the industry that the penalties need to be postponed, and the state is unlikely to start mass penalizing operators for non-compliance with the new regulation. Dmitry Lyoshkin, founder of the Prime group of companies, is convinced that the market will ignore the requirement, as the situation may change soon, and large networks will challenge the fines in court.

Sergey Kuyun, director of the A-95 consulting group, also notes that the state is aware of the risks of a market collapse:

“I think nothing terrible will happen on January 1. Everyone will continue to bring gasoline as before and hope that the state will understand the situation. Mass fines for importers in conditions where the country needs fuel for generators would be a shot in the foot for the state and could lead to a market collapse. Moreover, the market is not to blame here.”

Analyst Alexander Sirenko from the Naftorynok company does not rule out that deputies may decide to postpone the penalties by the end of the year, but even without this, mass fines are unlikely to occur. At the same time, it should not be completely ruled out that some government agencies may want to take advantage of the situation to demonstrate their effectiveness.

So far, market participants are not preparing to comply with the requirement for mandatory sales of E5 gasoline, and the situation in the market will depend on the position of government agencies regarding control and the application of fines.