Rising fuel prices will force car sales: How gasoline, gas, and diesel costs will increase in 2025.

According to the latest inflation report from the National Bank of Ukraine, this increase will exert additional pressure on the prices of goods and transportation services. However, a further decline in global oil prices may slow the pace of price growth in the long term.

In the last months of 2024, fuel price inflation slowed to 4.8% year-on-year in December, down from 6% in September. The rise in excise taxes in September primarily impacted the cost of liquefied gas, which also became more expensive due to rising raw material costs and increasing demand in Europe. The embargo on Russian raw materials, which came into effect on December 20, further contributed to price fluctuations.

Despite these factors, the drop in global oil prices and relatively weak demand helped stabilize gasoline and diesel prices. Many importers and fuel retailers stocked up in advance, anticipating the first phase of excise tax increases. This temporary buffer prevented a more rapid price rise.

In addition to oil prices and exchange rates, changes in tax policy and competitive pricing strategies among fuel retailers also affected fuel costs. By the end of 2024, fuel imports increased as businesses sought to build reserves ahead of the next round of excise tax hikes in early 2025. This strategy is expected to delay price increases for a short period, but the NBU warns that the effect will not last long.

It is anticipated that fuel prices in Ukraine will stabilize by mid-February 2025. However, according to Leonid Kosyanchuk, the CEO of the gas station network, a decrease in prices is unlikely. Market activity is expected to rise after the end of the so-called "dead season" around February 15 to 20.

Fuel market expert Dmitry Lyushkin also warned that the cost of gasoline and diesel may rise due to excise increases in January, rising global oil prices, and currency fluctuations.

Recall that starting in February, life will become more challenging: price increases, mobilization, banking limits, VVК, payments, auto taxes, and expensive products.

Earlier, "hyser" reported that total control over all vehicle owners: fines for drivers will increase significantly.

As reported by "hyser," the police urgently warned everyone with a vehicle: what checks need to be conducted.