Ukrainian parliament considers significant tax increase on liquefied petroleum gas
Ukraine's parliament the Verkhovna Rada is considering significantly increasing excise tax on liquefied petroleum gas (LPG) for vehicles, according to parliamentary tax committee chairman Danylo Hetmantsev on Dec. 13.
“The impact on the final price for consumers and whether LPG risks losing its popularity among Ukrainian car owners [remains to be seen],” said the Director of the A-95 consulting group, Serhiy Kuyun, speaking exclusively with NV.
“Since the energy value/efficiency of LPG is 20% lower than gasoline, a car needs 20% more LPG than gasoline to travel the same distance. This [legislative initiative] would effectively equalize the price ratio of these fuels.”
The Rada is currently proposing a threefold increase on the LPG excise tax, from $56 (EUR 52) to $182 (EUR 169) per 1,000 liters.
The LPG low tax was introduced 15 years ago. Since then, Ukraine has become one of the five global leaders in LPG consumption for transportation. In 2021, it accounted for a third of all fuel used in cars.
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