Representative of the President in the Cabinet of Ministers Andriy Gerus said that the Government recently approved a resolution which introduced a special duty on imports of diesel fuel (via pipeline transport) and liquefied gas from the Russian Federation. According to him, due to this, the state budget will receive about USD 2 billion per year. These funds should be directed to subsidies.
"The budget of Ukraine will additionally receive about USD 2 billion per year. In my opinion, these funds should be directed at expanding the subsidy program for disadvantaged population," Representative of the President in the Cabinet of Ministers noted on his Facebook page. According to him, 6.9 million households were using subsidies as of January 2018, but due to different solutions and events the number of subsidies was decreased to 3.6 million households as of January this year.
"This led to decrease in payment discipline, increase in debts for housing and communal services. In my opinion, an additional 1-1.5 million of needy families have the right to subsidies, so we are developing appropriate changes to the rules for receiving subsidies," he said.
Andriy Gerus noted that the joint decision of the President and the Government on the introduction of a special duty had been approved in response to the expansion of Russian economic sanctions. He recalled that the Russian Federation limited supplies to Ukraine of oil, motor oil, bitumen, ethanol, coal and such in April-May. According to the decision of the Ukrainian Government, the special duty on diesel fuel will be 3.75% from 1 August (4% since October 1), and 1.75% for liquefied gas (3% from October 1).
Representative of the President in the Cabinet of Ministers noted that the decision will not affect the retail prices of gas stations, as there is a competition and alternative sources of supply from Belarus, EU countries (Lithuania, Poland), sea supplies, etc.
He also added that there is a surplus on the market of petroleum products, there are grounds for further reduction of retail prices.