Tax Increase Starting in January: How Much More Will Fuel Cost in Ukraine?.

Fuel excise tax increase in Ukraine
Fuel excise tax increase in Ukraine

According to ТСН: At the beginning of 2026, Ukrainian drivers will once again face difficulties at gas stations. Starting January 1, a new phase of tax increases will begin in Ukraine, which will directly affect the price of every liter of fuel.

New Tax Rates: The Mathematics of Price Increase

According to current legislation, the tax burden on fuels will increase starting January 1. Expert Gennadiy Ryabtsev explains how the rates for every 1000 liters will change:

  • Gasoline: The tax will be increased by 29 Euros (to 300.8 Euros);

  • Diesel: The tax will be increased by 38 Euros (to 253.8 Euros);

  • LPG: The tax will be increased by 25 Euros (to 198 Euros).

According to preliminary calculations, this will lead to an increase in prices at gas stations of an average of 1.5–2.5 UAH/l. However, the actual situation could be less significant.

Oil Factor: Hope for Stability

The main factor pushing down gasoline and diesel prices is the global market development. By the end of December, oil prices are trading at 60 dollars per barrel, which is 4 dollars cheaper than in November.

“The decline in purchasing prices for petroleum products in Europe could offset the increase in taxes in Ukraine. Therefore, average prices for gasoline and diesel could only increase by 1 UAH/l in January or even remain at the current level,” predicts Ryabtsev.

The situation with LPG is particularly difficult. Currently, there are no circumstances for this fuel that could slow down the price increase, and therefore, drivers with gas vehicles should prepare for price hikes starting from the first days of January.

Generator Demand and 'Winter' Costs

Another factor that will influence the market is the use of generators. The demand for fuel to ensure the energy independence of businesses and households creates stable demand, preventing gas station prices from falling, even if oil prices remain low.

Therefore, Ukrainian drivers can expect additional financial burdens at the beginning of the new year due to tax increases. The situation in the fuel market remains complicated, especially for LPG, so it is important to monitor price changes at gas stations and plan expenses according to new conditions.


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