NAU wants revision of the rates of excise tax for gas and gasoline

Oil and gas Association of Ukraine (NAU) proposed a revision of the rates of excise tax on liquefied natural gas and gasoline.

НАУ хочет пересмотра ставок акцизного налога для газа и бензинов

This writes the UBR.

Now the excise tax on liquefied natural gas costs 52 euros/thousand litres — 4 times less than the tax rate on gasoline, component 213,5 € /thousand liters

NAU proposes to make a revision of the rates in 2 stages:

first establish excise tax rates for gasoline at 180 euros/thousand litres for liquefied natural gas — 95 euros/thousand litres;

then put them on the same level — 145 Euro/thousand liters

NAU reports that in recent years about 50% of the market of gasoline filled the liquefied gas and the growth continues. And for the quarantine period, sales volumes of gasoline fell by more than 50%.

If the offer of NAU about setting excise taxes at one level is accepted, the cost of “overpriced” gasoline will be reduced at least by 2.4 UAH./l, and the share of taxes in the price will fall from 71 to 63%. At the same time, the liquefied gas will rise by at least 2, 6 UAH./L.

“Thus, in two stages, the cost of petrol will be “legitimate” and logical 55.9 per cent, instead of 37.8 per cent now,” — said the expert of the fuel market Leonid kosyanchuk.

In his opinion, even after the increase in gas prices, due to operational characteristics it will be more profitable to buy than gasoline.

Director of “Ukravtogaz” Andrei Dorofeev said that in 2020 the rate of excise tax can be changed in accordance with organisational and regulatory procedures in Parliament. He believes that the issue can raise only towards the end of the year and it will include raising the excise tax on all fuels.