The Verkhovna Rada decided that from May 3, 2025, gasoline will contain at least 5% biofuel

People's deputy of Ukraine Y. Zheleznyak reported in his Telegram channel that the Verkhovna Rada adopted draft law No. 3356-d on the mandatory use of biofuel in the transport sector, according to which starting in May 2025 gasoline must contain at least 5% liquid biofuel.

Ukraine's accession to the Energy Community obliges it to adopt relevant changes in legislation, therefore the new draft law creates a legal framework for the development of the sphere of production, circulation and use of liquid biofuel in transport.

In addition to accounting and control of the content of biocomponents in gasoline, the draft law introduces responsibility for non-compliance with quotas by producers, importers and sellers of fuel. For the sale of gasoline without biofuel, a fine of seven subsistence minimums (currently UAH 3,028) is provided for able-bodied persons for every 1,000 liters of the batch received for sale, which as of 2024 will amount to more than UAH 21,000.

At the same time, the technical characteristics of fuel with biocomponents must meet the requirements of technical regulations, European standards and other legal documents.

Deputies expect an increase in tax revenues from Ukrainian business entities in the medium term due to the development of the liquid biofuel industry.

The authors of the Law believe that it will allow

• to bring the processes of liquid biofuel use in Ukraine to a qualitatively new level;
• to increase the workload of distilleries and the production potential of adjacent areas;
• create additional jobs;
• to improve the environmental situation by reducing emissions of harmful substances that are formed in the process of fuel combustion;
• to create conditions for the attraction of foreign and Ukrainian investments in the field of liquid biofuel production.

Every year, Ukraine consumes approximately 5.5 million tons of diesel fuel and 2.5 million tons of gasoline, which will allow the sale of almost 400,000 tons of biofuel. The necessary additional volume of bioethanol will be only 120-150 thousand tons, and 400-500 thousand tons of corn will be needed for its production.

We will remind that on June 4, the Verkhovna Rada adopted as a basis a draft law on the increase of excise taxes on fuel by 7-27% from July 1, ostensibly to bring Ukrainian legislation into line with European legislation within the framework of the implementation of the Association Agreement, but the actual reason is the need to replenish the budget.