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Raising tariffs will force Ukrainian businesses to expect higher prices

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Raising tariffs will force Ukrainian businesses to incorporate the increased costs into the prices of goods.

Planned tariff increases by government monopolies that control critical sectors will automatically increase production and transportation costs for all goods. The publication writes about it Ukrainian news.

The tariff is expected Ukrainergo for electricity transmission will increase in 2025 by 26% (from 529 to 665 UAH/MWh), the tariff for gas transportation of the GTS Operator of Ukraine – by 305% (from 124 to 503 UAH/thousand m³), ​​​and tariffs Ukrzaliznytsia for business can increase an average of 37%.

The publication states that the increase in tariffs forces businesses to include increased costs in the prices of goods, which will inevitably lead to their growth. And although these tariffs are separately not equivalent to the value structure of a product, together, because they are related to each stage of production of the product, to the final cost, in some cases , they can generally reach up to 20%.

Business representatives believe that the best solution is to freeze tariffs until the end of martial law – to force the management of state-owned enterprises to increase efficiency and find internal and external source of financing.

“Raising tariffs is the simplest solution that the managers of state monopolies are trying. At the moment, it may be effective for them, but its consequences for the economy, for every ordinary Ukrainian, will be serious the increase will lead to a decrease in business activity will begin to decrease, the purchase of electricity and gas will decrease, and there will be less cargo, and after some time, the state monopolies will again have to raise tariffs to conquer theirs cost it can continue indefinitely. “This vicious circle must be broken at some point,” said the material.

Let’s remember that the National Commission, which carries out state regulation in the field of energy and utilities, has approved an increase in the electricity transmission tariff for 2025 by 25.8%.

Industrialists appealed to President Vladimir Zelensky about the increase in tariffs Ukrzaliznytsia.

Source: korrespondent

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