On May 14, the Cabinet of Ministers of Ukraine has adopted a resolution introducing marginal trade surcharges (margins) on fuel for the period of quarantine. Fuel sellers should take this surcharge into account when setting the retail price of fuel sold through the gas station network.
“The introduction by the Government of maximum trade surcharges on fuel is a forced and temporary measure for the period of quarantine. This is a response to the unjustified rise in fuel prices in retail networks. Government advocates healthy and transparent competition in the fuel market. But at the same time, the Government must protect ordinary consumers who have already suffered from forced quarantine restrictions. The maximum size of the trade margin will prevent price manipulation, stabilize the retail fuel market and introduce a transparent pricing mechanism," commented the Minister of Economic Development, Trade and Agriculture of Ukraine Ihor Petrashko.
The marginal trade margin will be added to the average cost of fuel, which will be determined on the basis of data from the international news agency Platts CIF NWE for the previous decade, including excise duty and value added tax.
The maximum level of trade margin is set as follows:
- not more than 7 hryvnias (including VAT) per 1 liter for diesel fuel;
- not more than 5 hryvnias (including VAT) per 1 liter for motor gasoline.
Such maximum trade margins are proposed on the basis of the analysis of retail fuel sales margins, based on data from international news agencies on fuel prices on European exchanges, open statistics and open data of Ukrainian news agencies on retail fuel prices for the last 3 years.
Information on the average cost of 1 liter of diesel fuel and gasoline is published on the official website of the Ministry of Economic Development, Trade and Agriculture every month until the 3rd, 13th and 23rd date of each month.
The decision comes into force on the day following the day of publication, i.e. on May 15.