On imported diesel and LPG.
Even wrote a letter to the Ministry of economic development, trade and agriculture. There have to weigh all the “pros” and “cons” and to make the necessary duty or not. But a few minutes before the meeting, the question just withdrew. What about the likely increase in fuel prices I think the officials and who benefits from the duty – recognized journalists.
Duties require setting at nearly 8 and a half percent. And Ukrainian producers of petroleum products insist that the tax rate should grow from year to year until 2024 Ukrainian company is asking nearly 26 per cent duty for foreign competitors. The introduction of fees will boost domestic production and reduce the cost of Ukrainian products.
The cost of production may decrease and prices at the pump – unlikely, say the experts.
Duty – continuous benefit for the Ukrainian sellers of fuel. Only domestic diesel country is not enough. Ukrainian monopolists due to the large demand will dictate prices at its discretion.
“The size of the proposed fees is that the channel just closed. This will lead to monopolization of the market players that left, including internal. What is the logic of duties?
To close, limiting competition, so someone would have to raise prices,” – says the Director of consulting group “A-95” Sergey Kuiun.
There is another option – sellers-foreigners remain on the Ukrainian market, but sell fuel much more expensive. Ukrainian monopolies also raise prices on their goods.
For five hundred hryvnia per week, Vladimir leaves the cashier CNG filling stations. Spending more will not.
“I had 20 minutes to go in the tube, respectively, the gas flow rate increases. I will go, because the work associated with the movement of the car” – says a resident of Kiev Vladimir Balalyka.
Drivers do not understand why the price of oil falls in the world, and fuel at Ukrainian gas stations can rise.
More expensive diesel fuel and liquefied gas – more expensive tickets for public transportation. And haul cargo too will be more expensive.
“Agricultural companies transporting harvest using diesel fuel. The Ukrainian railway “Ukrzaliznytsia”, which carries both passengers and cargo. And mining enterprises. This is all to shift the final product”, – says President of Association of enterprises “Ukrmetallurgprom” Alexander Kalenkov,
That is going to pay for more expensive fuel buyers of any product. And earn on more only to domestic manufacturers of petroleum products.
“This factor definitely plays against end users, because if someone earns, someone loses,” says economic expert Boris Kushniruk.
Offer officials – duty to enter and develop the Ukrainian oil refining industry in the competitive environment.
When the Ukrainian companies will produce enough for the country of fuel and imported is not required.