Chronicles of rising prices: VAT works

So, the new and old fuel taxes are in force. In three days, gasoline-GP plus 2 UAH/l, today another plus 2-3 is expected.

Let me remind you that two taxes have increased - excise taxes and VAT. The tax component in the cost of gasoline increased by 11 UAH/l (about 3.5 UAH is excise tax, the rest is VAT), diesel fuel - by approximately 7.5 UAH/l, of which excise tax is 1.3 UAH/l. Liquefied gas is affected only by an increase in VAT (excise duty unchanged), and this is up to 3 UAH/l.

The first wave of fuel price increases is due to VAT, since it is paid upon sale.

The excise tax should work on prices in the second half of the month, since the market imported large volumes of the product in May-June with a low excise tax rate. As inventory volumes with the “old” excise tax are replaced by new volumes with a high rate, integration into the price will occur.

As you can see, this mainly concerns gasoline, because the excise tax on it has more than doubled. Diesel and autogas will mostly show their new prices by the end of this week. We will sum up the final results at the end of the month.

I understand the increase in “fuel” taxes - the country needs money for defense, there are no other sources of financing. But I hope that tax officials will work actively so that high taxes reach the budget and do not remain in the pockets of “economy networks”, as was the case until 2022. They are already rubbing their hands.