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New excise duties on fuel in Ukraine may lead to higher prices for bread, milk and vegetables

25.07.2024 10:19

The Government of Ukraine has adopted a law on the increase of excise duties on fuel, which will enter into force on September 1, 2024. According to experts, this decision will lead to an increase in the prices of almost all consumer goods.

In an interview with UNIAN, Dmitry Leushkin, the founder of the logistics group «Prime», noted that companies will not be able to ignore the increase in fuel prices, especially in the context of frequent power outages, when many entrepreneurs use generators.

«A kilowatt of energy produced by a generator costs ten times more than a kilowatt purchased from the state from conventional electricity grids», he noted.

Experts predict that energy-intensive goods and services will see the biggest price increases. For example, bread can be significantly more expensive than sausage products, because more electricity is spent on its production. Along with this, it is expected that the prices of dairy products will also increase due to the need for continuous cooling.

At the same time, according to Leushkin, prices for some vegetables, such as potatoes and carrots, will also rise somewhat.

It should be noted that according to the law, excise tax rates in Ukraine will be increased gradually over four years. By 2028, 1,000 liters of gasoline will cost 359 euros, 1,000 liters of diesel fuel will cost 330 euros, and 1,000 liters of liquefied natural gas will cost 70 euros.

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