The Cabinet of Ministers explained why a cashback on fuel was introduced in Ukraine instead of changing excise taxes

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Minister of Economy Oleksiy Sobolev explained the choice of cashback instead of limiting fuel prices. Citizens spend 75% of the received funds on utility payments.

Ukraine has introduced a national cashback program for fuel, as changing excise taxes could harm the army, and administrative price caps would lead to fuel shortages. This was stated by Ukraine's Minister of Economy, Oleksiy Sobolev, explaining the reasons for launching the program in parliament on March 28, as reported by UNN.

Details

According to him, the state chose the mechanism of consumer support through cashback instead of other options for intervention in the fuel market.

Sobolev reminded that funds received under the program can be spent on Ukrainian goods, books, medicines, utility payments, or donated to the needs of the Armed Forces of Ukraine.

At the same time, according to the official, the largest share of cashback spending falls precisely on utility payments. This accounts for 75% of all funds that citizens use within the program.

In addition, Sobolev reported that within six days after the program's launch, approximately 20 million hryvnias in cashback are accrued daily.

Overall, the Government assures: the national fuel cashback has become a tool that allows supporting citizens without additional pressure on the fuel market.

Recall

After the launch of the government program, fuel prices increased by several hryvnias per day. The cost of diesel fuel at some gas stations reached almost 88 hryvnias per liter.

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