According to the press service of the Antimonopoly Committee of Ukraine, 25% of gasoline in Ukraine is now sold untaxed, causing tax revenue loss of nearly $750 million annually.
It’s all part of an illegal fuel market has been steadily growing in Ukraine. According to the Antimonopoly Committee, whose representatives were speaking with members of the European Business Association, 19% of diesel and 34% of Autogas were now being sold illegally.
The committee outlined new measures to combat the illegal sale of fuel, including new monitoring systems and greater cooperation between government ministries.
Sergey Kuyun, director of the A-95 consulting group, stated that this problem has surged in recent years. “The shadow market for petroleum is now experiencing a real renaissance. There are at least 25 illegal mini-refineries operating in the country that produce products of inferior standards.”
“The lack of quality control at filling station makes it easy to sell this fuel to consumers,” Kuyun told our reporter. “COVID-19 quarantines gave additional incentives for this when the government banned business inspections.”
According to Kuyun, the A-95 consulting group estimates that the total loss from the state budgets as a result of illegal fuel sales is even higher than the EBA’s estimates- totalling nearly Hr 22 billion in 2021.
Currently, almost half the price of fuel at petrol stations is made up of taxes. The sale of illegal fuel greatly hurts the government’s attempts to raise money for the state budget.
It is expected that by the early Autumn, the Antimonopoly Committee and European Business Association will restart talks following the implementation of concrete measures to tackle illegal sales.
