The Verkhovna Rada is Considering Ways to Stabilize Fuel Prices and Support Farmers
A draft resolution aimed at stabilizing fuel prices has been registered in the Verkhovna Rada of Ukraine. In particular, among the main proposals is the reduction of the value-added tax (VAT) on petroleum products, as well as a decrease in excise duties.
This is reported by AgroReview
Proposals for Tax Changes in the Fuel Market
As noted by Member of Parliament Yulia Tymoshenko, an effective way to regulate fuel prices could be the adoption of laws to lower VAT and excise taxes on petroleum products. Additionally, some lawmakers support the idea of maintaining the current taxation system for petroleum products during the planting campaign. This would allow farmers to avoid additional financial burdens during a critical time for the industry.
Market Control and Risks of Shortages
Among other proposed measures is the instruction for the Antimonopoly Committee of Ukraine (AMCU) to conduct an urgent inspection of petroleum product stocks held by traders and ensure price stabilization at levels that existed before the crisis. During a speech in parliament on March 11, AMCU Chairman Pavlo Kyrylenko emphasized that after the shutdown of the largest oil refinery in the country, almost all light petroleum products have to be imported. In his opinion, this has led to increased demand and, consequently, rising prices.
“The program will concern consumers of diesel, gasoline, and automotive gas in Ukraine and will operate through a cashback system, allowing for the reimbursement of part of the fuel costs,” said Zelensky.
According to Pavlo Kyrylenko, the demand for A-95 gasoline in Ukraine has increased by 40-70%, while the demand for diesel fuel has risen by 60-140%. The head of the parliamentary committee on finance, tax, and customs policy, Danilo Hetmantsev, noted that the country may face a shortage of fuel and lubricants as early as spring.
In response to rising prices, President of Ukraine Volodymyr Zelensky instructed the creation of a special cashback program for consumers of gasoline, diesel fuel, and autogas. This initiative aims to partially compensate for Ukrainians’ fuel expenses amid global instability in the oil market.