Tax and accounting insights for Ukraine
05.06.24
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The Verkhovna Rada obliged to use biofuels in transport

The Verkhovna Rada has adopted as a whole the draft law No. 3356-d on the mandatory use of liquid biofuels (biocomponents) in the field of transport.

This was reported by MP Yaroslav Zheleznyak in his Telegram. According to him, 235 MPs supported the bill in the second reading.

According to the document, starting from May 1, 2025, the mandatory biofuel component in gasoline must be at least 5%. This refers to the use of biobutanol, biogas, biodiesel, bioethanol, biohydrogen, etc.

According to the explanatory note to the basic draft law, the purpose of the document is to create a regulatory framework for the development of the production, circulation and use of liquid biofuels in transport.

The goal is planned to be achieved by amending the Law of Ukraine "On Alternative Fuels" and the Law of Ukraine "On the Basic Principles of State Supervision (Control) in the Field of Economic Activity" in terms of

- determination of the mandatory content of liquid biofuels (biocomponents) in all volumes of motor gasoline supplied from fuel production sites, fuel wholesale outlets and fuel retail outlets, except for gasoline with an octane rating of 98 and above and gasoline supplied for the needs of the Ministry of Defense, the State Reserve and for the creation of minimum stocks of oil and oil products:

starting from May 1, 2022 - at least 5% (by volume), with an absolute determination error of ±0.5%;

- introduction of accounting for the content of liquid biofuels (biocomponents) in motor fuel and alternative fuel in the oil products market, which is entrusted to the central executive body implementing state policy in the areas of efficient use of fuel and energy resources, energy saving, renewable energy sources and alternative fuels (State Agency on Energy Efficiency and Energy Saving).

It is also stipulated that the Procedure for the said accounting shall be approved by the central executive body responsible for the formation of state policy in the field of efficient use of fuel and energy resources, energy saving, renewable energy sources and alternative fuels (except for issues of ensuring energy efficiency of buildings and other structures) (the Ministry of Energy);

  • non-compliance with the requirements for the release of all volumes of motor gasoline containing the normatively defined mandatory share of liquid biofuels (biocomponents) from retail fuel outlets in the customs territory of Ukraine was classified as an offense;
  • non-compliance with the requirements for the release of all volumes of motor gasoline containing the normatively defined mandatory share of liquid biofuels (biocomponents) from the places of production and/or wholesale trade in fuel in the customs territory of Ukraine was classified as an offense;
  • untimely or failure to provide information on the content of liquid biofuels (biocomponents) in the volumes of motor gasoline sold in the customs territory of Ukraine from places of production and wholesale tradein fuel.

Buhgalter 911 notes that the content of the author's materials may not coincide with the policy and opinion of the editorial team. The authors of the published materials include not only representatives of the editorial team.

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