Economy

Mykhailo Pozhivanov: there are several reasons for the sharp rise in prices in Ukraine

During the 7 months of full-scale war, the prices of most goods rose sharply.

During the 7 months of the full-scale war with Russia, the prices of most goods - both non-food and food - have risen sharply in our country.

In an ElitExpert commentary, People's Deputy of four convocations and ex-Deputy Minister of Economy Mykhailo Pozhivanov, who is currently the chairman of the "Batkivshchyna" VO in the city, told about how hostilities, rising fuel prices and imported goods increase the general inflation rate and whether it is possible to lower prices in Ukraine. Odessa.

"Of course, people want to lower prices, but we have to be realistic: it is impossible to achieve the pre-war level of prices in today's situation. After all, most productions have either stopped or are working in very risky conditions. In addition, export-import restrictions were imposed, which occurred after the National Bank practically prohibited the withdrawal of currency under contracts, allowing only critical imports. Accordingly, in many cases, production volumes fell sharply, increased demand for one or another product appeared, and the price, accordingly, increased."

In addition, Mykhailo Pozhivanov emphasized, another important reason for the increase in prices is the fact that Russia bombed the largest Kremenchug oil refinery in Ukraine. It is currently completely disabled and does not work.

"This led to a sharp jump in the prices of petroleum products, and, accordingly, to an increase in the price of almost all goods in the country, because in the cost of any product there is a share that falls on fuel and lubricants. Plus, no matter what, any production still consumes electricity, fuel, gas. And the price of gas has increased on the exchanges to two and a half thousand dollars for 1 thousand cubic meters.

So, unfortunately, neither the president nor the government has leverage to lower prices. Perhaps, according to the price schemes, the prices could be a little cheaper, but in practice we all understand: if the manufacturer has raised the price, he will never lower it," Mykhailo Pozhivanov summarized.

Meanwhile, on September 21, the Verkhovna Rada adopted Law No. 7668-d, which returned the collection of excise duty on fuel for Ukrainians. The adopted law stipulates that for every thousand liters of gasoline, diesel fuel and biofuel, an excise tax of EUR 100 will be collected from oil product market operators, and EUR 52 for every thousand liters of liquefied gas. At the same time, the Verkhovna Rada left the current rate of VAT on all types of petroleum products at 7%.

As Mykhailo Pozhivanov noted, the law adopted by the parliament will result in an even greater increase in retail prices for diesel and gasoline, at least by 4 hryvnias per liter, and will therefore lead to a new increase in product prices.

"One hundred euros from every thousand liters of fuel is 10 cents from one liter, that is, at the current exchange rate, more than 4 hryvnias," the expert noted. - But the main thing is that this additional money, which the state will receive, will not go to support people, which is now extremely necessary, but to restore large-scale state programs, such as road works as part of the "Great Construction". It seems to me that during the war, when the infrastructure objects, bridges and roads, are subjected to constant attacks and bombings, it is not entirely appropriate to invest money in this without knowing whether the road will be destroyed again tomorrow.

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