Ukraine's Government Keeps Fuel Taxes Steady, Expands Cashback Program Instead

The Current State of Ukraine's Fuel Market

According to Главком: The Cabinet of Ministers of Ukraine has announced it will not reduce the value-added tax (VAT) or excise duties on fuel. Instead, the government is expanding the scope of the 'National Cashback' program, which will remain active for fuel purchases at filling stations until May 1, 2026. Under this initiative, consumers can receive:

• 15% cashback for diesel fuel,
• 10% for gasoline,
• 5% for autogas.

To date, 9.4 million citizens have already participated in the 'National Cashback' program. This policy reflects an effort to provide direct financial relief to consumers without cutting state revenue from fuel taxes.

Fuel Prices and Their Impact on the Agricultural Sector

As of March 13, 2026, the average price for A-95 gasoline was approximately 69.76 UAH per liter, while the average price for diesel fuel reached 75.92 UAH per liter. Prices for light petroleum products in Ukraine are not subject to state regulation, as the country's market for these products is entirely dependent on imports. The Antimonopoly Committee of Ukraine has initiated a review of the fuel market situation, which could affect its stability.

The Ukrainian authorities have also reached an agreement with NJSC 'Naftogaz' and 'Ukrnafta' to help contain the rise in gasoline prices. It is important to note that fuel costs constitute 10-15% of the production cost structure for agricultural goods. Should fuel prices increase, the cost of agricultural products could rise by 1-2%.

"Therefore, the programs we are proposing will be financed within the existing expenditures and the programs available at the Ministry of Economy and the Ministry of Social Policy," noted Yuliia Svyrydenko.

This statement underscores the government's commitment to maintaining social programs despite fluctuations in fuel prices.

Overall, the situation on the fuel market will remain under control, as the government is taking measures to prevent sharp price spikes, which could, in turn, impact the country's economic stability.

The support for the 'National Cashback' program and the decision to maintain current fuel tax levels indicate the Ukrainian government's attempts to preserve social stability amid volatile energy prices. Given that fuel expenses significantly influence the cost of agricultural output, effective measures to control fuel prices could be key to ensuring stability not only in the fuel market but also in the nation's agricultural sector. These government initiatives are aimed at supporting consumers and maintaining fuel availability, which is crucial for the overall economy.