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Government announces special diesel duties

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Ukraine'es Cabinet of Ministers officially published a decree on the introduction of special duties for the import of diesel fuel and autogas from Russia. They will take effect on August 1 and will grow on October 1. Experts say this will affect the increase in wholesale prices, but is unlikely to hit the pockets of car owners because of the high retail margin of gas stations.

The duty on diesel fuel will be 3.75% from August 1 and 4% from October 1. The duty on natural gas for automobiles will be 1.75% from August 1 and 3% from October 1.

Restrictions will be in effect until "the moment the Russian Federation stops discriminatory and/or unfriendly actions against Ukraine". In essence, the duties were a response to the expansion of sanctions on the part of Russia, which restricted the export of oil, gasoline and coal to Ukraine.

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