Aiming to improve the supply of motor fuel, the Government yesterday submitted to the Verkhovna Rada of Ukraine a bill abolishing the excise tax on fuel and reducing the VAT rate from 20% to 7%, told Prime Minister of Ukraine Denys Shmyhal in his video address March 12.

“This significant reduction in taxes rates will enable us to stabilize prices and prevent deficits. We are also considering a proposal to reduce VAT to 0% if the logistics costs of fuel suppliers raise”, noted the Head of Government.

Denys Shmyhal added the Government engages in negotiating with the world's major companies for the supply of gasoline and diesel, we engage in developing new logistics chains for the supply of these products to Ukraine.

Apart from that the Prime Minister emphasized gas reserves are now at about 9.5 billion cubic meters. Gas imports from Hungary, Slovakia and Poland continue. According to the PM, Ukrgazvydobuvannya prolongs producing gas at all facilities, except those directly on the confrontation lines, in places of active hostilities.

“Currently, there are operating four nuclear power plants, all hydroelectric power plants, ТPPs. We have certain agreements with Poland for the supply of additional consignments of coal by rail”, noted the Head of Government.

To ensure economy of coal, the Government has endorsed a decision that Ukrainian thermal power plants will receive gas at a discounted price, added Denys Shmyhal.