Funds to be earned from higher excise rates will be spent on road repairs / Photo from UNIAN
The Ukrainian Finance Ministry plans to obtain UAH 3.2 billion, or about EUR 125 million at the current forex rate, from an increase in petrol excise rates in 2016, according to Ukrainian Finance Minister Natalie Jaresko.
In particular, the Ukrainian government suggests that lawmakers vote for a 13% increase in fuel excise as of next year, Jaresko said addressing Ukraine's parliament in Kyiv on December 22.
Funds to be thus earned will be channeled into a special fund and will be spent on repairs to motor roads in Ukraine.
"UAH 3.2 billion will be sent to a special fund for road repairs," Jaresko said.
UNIAN's memo. Currently, an excise rate on motor petrol in Ukraine is set at EUR 204 per tonne, that on diesel fuel is fixed at EUR 100 per tonne.
Experts claim that an increase in excise by one euro pushes the price of one liter of petrol by one kopeck (one hryvnia is equal to 100 kopecks, or Ukrainian kopiykas).
The official forex rate set by the National Bank of Ukraine as of December 22, 2015, is UAH 23.518152 per U.S. dollar and UAH 25.564231 per euro.