Zelenskyy signs law to increase fuel excise taxes from September 1 — it will be implemented «retroactively»

The purpose of the changes is to bring Ukrainian excise taxes closer to the minimum level set by the European Union.

The Law № 11256-2 envisages a gradual increase in the excise tax on fuel in Ukraine over 4 years — will start on September 1, 2024 and last until January 1, 2028. Excise rates will increase depending on the type of fuel:

• gasoline — up to EUR 242.60 per 1,000 liters;
• diesel fuel — up to 177.60 euros per 1,000 liters;
• propane-butane (LPG, autogas) — up to EUR 55.60 per 1,000 liters.

As reported by Judicial and legal newspaper, it is expected that with these changes fuel prices will increase by about UAH 1.5-2 by the end of the yeargasoline – up to UAH 57.42 per liter, and diesel fuel – up to UAH 55.58 per liter.

Meanwhile, starting January 1, 2028, according to the law card, excise rates will reach the following levels:

• gasoline — 359 euros per 1,000 liters;
• diesel fuel — 330 euros per 1,000 liters;
• autogas — previously the rate was supposed to be 250 euros per 1,000 liters, but now it has been left at 70 euros.

The explanatory note to the law states that the increase in excise taxes on fuel will help increase budget revenues to the state budget:

• from fuel sales by UAH 1,604.72 million on average per month in the second half of 2024;
• on excise tax on sales of intermediate products with increased excise tax rates by UAH 4.5 million for the month.