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A program for fuel reimbursement has been launched in Ukraine: how it works

A program for fuel reimbursement has been launched in Ukraine: how it works
В Україні стартувала ініціатива для компенсації витрат на паливо: деталі та умови її функціонування. Photo: Главком

How to get fuel compensation

According to Главком: From March 20 to May 1, 2023, a state program to reimburse part of the fuel costs is in effect in Ukraine. Its financing is carried out from the current budget of the Ministry of Economy. Car owners can receive cashback: 15% from the amount of diesel fuel purchased, 10% for gasoline, and 5% for gas. The payment limit is set at 1000 hryvnias per person per month.

In the first six days of the program, about 20 million hryvnias in cashback were credited daily. Many major gas station networks participate in the project, including:

  • Ukrnafta
  • OKKO
  • WOG
  • Amic Energy
  • BVS
  • KLO
  • Motto
  • Chipo
  • VostokGas
  • Autotrans
  • Mango
  • Parallel
  • Rodnik
  • BRSM-Nafta

It is expected that UPG, Socar Energy, Martin LLC, and Marshal will join them soon.

Program goals and authorities' opinions

According to Alexey Sobolev, the government considered various options for helping the population amid rising prices. He noted that measures such as changing excise duties, which some European countries introduced, could negatively affect defense financing.

“Moreover, those with more cars would mainly benefit from this,” said Alexey Sobolev.

Sobolev also emphasized that about 75% of citizens' expenses go to utility services.

“So it is evident that this helps those who need it. It also helps our energy sector and Naftogaz to reduce debt,” he added.

As of March 27, 2023, the average price of a liter of A-95 gasoline was approximately 72.72 hryvnias, while diesel fuel was 84.48 hryvnias. Similar measures to support car owners in times of crisis are being applied in other countries facing a sharp rise in energy prices.

The main goal of the program is to alleviate the financial burden on Ukrainians during difficult times and provide support to motorists. The introduction of cashback for fuel has become the government's response to rising prices and economic difficulties. Since a large portion of household expenses goes to utility services, such targeted assistance can significantly ease the budget for many families, especially in times of war and instability.

In light of the ongoing fuel reimbursement program, it's worth noting that similar initiatives are being implemented across the globe to ease the financial strain on drivers. For instance, the national cashback on fuel in Ukraine has been announced, offering up to 15% cashback, which aligns with efforts to support citizens during these challenging economic times.

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