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August 2, 2024Starting from 2025, Ukraine may begin to see an increase in housing and utility tariffs.
The National Bank of Ukraine (NBU) in its report forecasts their “gradual adjustment to market levels.”
This year, it is expected that tariffs for gas, heating and hot water will not be revised. However, the increase in electricity prices in June turned out to be higher than the NBU had anticipated, accelerating inflation to 13.3% year-on-year.
There might also be a gradual increase in excise taxes. This, along with other price increases, will be a significant factor for inflation growth in 2025-2026.
However, freezing tariffs at their current levels “will accumulate quasi-fiscal imbalances and worsen the financial condition of state energy companies,” deferring the price pressure to the future, according to the NBU.
In the following years, administrative inflation is expected to grow by more than 10% due to tariff increases.
Previously, Ukrainian MP Popenko stated that the Verkhovna Rada is considering raising gas and heating tariffs as early as this fall.