The government has no plans to reduce excise duty or VAT on fuel, says Prime Minister Svyrydenko

Ukrainian Prime Minister Yulia Svyrydenko at the podium of the Verkhovna Rada. Illustrative photo

The Cabinet of Ministers of Ukraine has no plans to reduce either VAT or excise duty on fuel to keep prices in check.

This was announced by Ukrainian Prime Minister Yuliia Svyrydenko during Question Time to the government in the Verkhovna Rada.

According to her, all taxes and duties go into the revenue side of the state budget, which, among other things, funds the Ukrainian army.

Meanwhile, Ukrainian President Volodymyr Zelenskyy has announced a support programme for Ukrainians facing particular hardship due to the destabilisation of the fuel market. It will apply to consumers of diesel, petrol and autogas and will operate via a cashback scheme, which will compensate for part of fuel costs.

Yuliia Svyrydenko clarified that the scheme will be implemented within the framework of the existing cashback programme and available budgetary expenditure. A 15% cashback is envisaged for diesel fuel, 10% for petrol and 5% for autogas. The programme will run until 1 May 2026 at all petrol stations that join the initiative.

As a reminder, fuel prices in Ukraine rose significantly between 2 and 3 March. On average, petroleum products rose in price by approximately 2 hryvnias per litre, exceeding the 65 hryvnias per litre mark. Liquefied petroleum gas rose in price by 58 kopecks to 39.05 hryvnias per litre.

This was caused by a sharp rise in wholesale prices against the backdrop of rising oil prices. Fuel prices at Ukrainian petrol stations have risen sharply amid the escalating geopolitical situation in the Middle East.

Ukrainian President Volodymyr Zelenskyy also announced that the state-owned company Ukrnafta would reduce its fuel mark-up during the crisis to curb price rises at petrol stations.