Cabinet proposes to introduce 2% duty on fuel, return to 2% duty on natural gas

The Ukrainian government has proposed to impose a 2% extra duty charge on fuel from all consumers and again increase the extra charge on the present tariffs for natural gas for budget organizations from a zero to 2%.

According to draft amendments to the 2009 national budget and some other laws submitted by the cabinet to the parliament on Monday, the UAH 1.62 billion raised from the above-mentioned duties would be sent to a new budget program of the Fuel and Energy Ministry on exploratory drilling, and equipment to launch new oil and gas fields.

According to calculations of the cabinet, the 2% duty on fuel would bring in UAH 1.06 billion in 2009, while the duty on gas would raise UAH 560 million.

The calculations are based on a forecast of the sale of 3.75 million tonnes of petrol at UAH 5,200 per tonne, 4.5 million tonnes of diesel fuel at UAH 4,800 per tonne and 3.38 million tonnes of liquefied gas at UAH 3,500 per tonne, as well as 14.16 billion cubic meters of gas at UAH 1,980 per thousand cubic meters.

The cabinet also said that it proposes to scrap the zero duty on metals, mining and chemical companies.