The government explained why it did not support artificial price regulation at gas stations
The government chose the option of a “fuel cashback,” as it does not affect military support and provides assistance to those who need financial help the most.
This was stated by Ukraine’s Minister of Economy Alexey Sobolev, as reported by RBC-Ukraine, citing his speech in the Verkhovna Rada.
Read also: “Fuel” cashback has started in Ukraine: how to receive money and when it will arrive
“We considered various options to mitigate the price shock for the population. Changes in excise taxes, which some European countries implemented, would directly impact the army and reduce defense funding. Moreover, the benefits would primarily go to those who own more cars,” Sobolev noted.
According to him, price restrictions would lead to fuel shortages and market distortions, as was the case in 2022. Therefore, the government opted for the cashback option.
From March 20 to May 1, Ukrainians will be able to receive partial compensation for the cost of fuel purchased at gas stations: diesel – 15%, gasoline – 10%, autogas – 5%, up to a maximum of one thousand hryvnias per month. The cashback can be spent on utility services, food products of Ukrainian production, books, medicines, or donated to the Armed Forces of Ukraine.
“We see that 75% of expenses go specifically to utility services. Therefore, it is clear that this helps those who need it. It also assists our energy sector and the Naftogaz company in reducing debt,” the Minister of Economy added.
He also emphasized that during the first six days since the program’s launch, approximately 20 million hryvnias in cashback is credited daily, funded from the current budget of the Ministry of Economy.
Fuel prices in Ukraine
Recall that earlier, in a comment to RBC-Ukraine, the director of the A-95 Consulting Group, Kuyun, mentioned the condition under which Ukrainian gas stations might begin to lower fuel prices.
Additionally, recent media reports have raised alarming forecasts about a fuel shortage in April. RBC-Ukraine inquired with fuel expert Vladimir Omelchenko whether such a threat truly exists.
Earlier, the Antimonopoly Committee of Ukraine also addressed the largest gas station networks, demanding explanations for the price increases. According to the head of the AMC, Pavel Kirilenko, demand for A-95 gasoline has increased by 40-70%, and for diesel by 60-140%.
