Car fuel is getting more expensive: what prices to expect?

Reasons for price increase

The cost of automobile fuel in Ukraine will increase significantly in the near future due to several main factors. The main reason is the restoration of excise taxes on fuel after their abolition, which is caused by an increase in the need for financing the state budget. The rise in global oil prices also plays a significant role.

In mid-2022, Ukraine abolished excise taxes on fuel due to the Russian invasion and related economic challenges. However, now, given the current financial situation, the government has decided to restore these excise duties, which is bound to affect prices.

Forecasts and expectations

It is expected that after the restoration of excise duties, the average price of gasoline and diesel fuel will increase by 11-13 hryvnias per liter. Thus, A-95 gasoline can cost about 59 hryvnias per liter, and diesel fuel - up to 57 hryvnias per liter. This growth will be felt by all categories of consumers, including private car owners and commercial vehicles.

Liquefied gas is also becoming more expensive, but less: its price may increase by 5-7 hryvnias per liter, reaching approximately 28-30 hryvnias per liter. This fuel is often used as a cheaper alternative to gasoline, but even this option is becoming less available.

Impact on the market and consumers

The increase in fuel prices will directly affect the expenses of Ukrainians, forcing many to review their transportation expenses. This may lead to a decrease in the number of trips, which, in turn, will affect the revenues of transport companies and the general mobility of the population.

For businesses, rising fuel prices will mean higher logistics and transport costs. This will likely lead to higher prices for goods and services, as companies will be forced to compensate for increased fuel costs.

Possible measures to mitigate the situation

The government may consider introducing temporary subsidies or other tax cuts to mitigate the impact of rising fuel prices for critical industries. Also, the development of alternative energy sources, such as electric vehicles, can help reduce dependence on fuel and stabilize the market situation.

Conclusion

The increase in the price of automobile fuel in Ukraine is inevitable due to the restoration of excise duties and the rise in world oil prices. This will have a significant impact on the economy and the lives of Ukrainians. It is important that government and business take steps to minimize this impact and ensure market stability.