Ukraine's parliament passes law to raise motor fuel excise in 2024-2028

MOSCOW. July 18 (Interfax) - Ukraine's parliament has passed at its final reading a law on a phased increase of excise duty on motor fuel, Ukrainian media quoted MP Yaroslav Zhelezniak as saying on Telegram.

"The parliament passed bill No. 11256-2 on increasing the excise tax on fuel. The LPG [liquid petroleum gas] amendment (No. 267) was also supported," he said.

The parliament on June 4 adopted the bill, which at the time did not envisage a sharp increase in LPG excise, at its first reading.

The document contains a schedule for annual increases in excise rates from July 1, 2024, to January 1, 2028. The excise on gasoline is due to rise from the current 213.50 euros per 1,000 liters to 242.60 euros in July 2024, 271.70 euros in 2025, 300.80 euros in 2026, 329.90 euros in 2027 and 359 euros from 2028.

The excise on diesel fuel should rise from the current 139.50 euros per 1,000 liters to 177.60 euros in July 2024, 215.70 euros in 2025, 253.80 euros in 2026, 291.90 euros in 2027 and 330 euros from 2028.

The excise on liquefied gas (propane or mixture of propane and butane, LPG) is to rise from the current 52 euros per 1,000 liters to 55.60 euros in July 2024, 59.20 euros in 2025, 62.80 euros in 2026, 66.40 euros in 2027 and 70 euros from 2028.

The parliament's Finance, Tax, and Customs Policy Committee approved the bill for the second reading on July 4. Compared to the bill adopted at the first reading, the committee proposed increasing excise on LPG from the current 52 euros per 1,000 liters to 250 euros from 2028 instead of 70 euros.

The law is due to go into effect on September 1, 2024.