The Cabinet raised the prices for all the strong alcohol
Yesterday the Minister of Agrarian Policy Mykola Prysiazhniuk said that the price of a bottle of vodka had been raised by 7.3%, while cognac would remain on the previous level. However, as it became known today, the Cabinet maximally raised the minimum prices of strong alcohol - by 15-20% as vodka producers wanted.
The Cabinet of Ministers of Ukraine has increased the minimum retail price for vodka by 15.3%, and for cognac - by 18-20%. The relevant resolution of the Cabinet No. 1017, adopted on November 7, appeared on the government website on Thursday.
According to the decision, the raising will take place in two stages: in the coming days - by 9.2%, and from March 1, 2013 - by further 5.6%. Thus, the cheapest 0.5 liter bottle of vodka in retail will rise first to UAH 28.5 (currently UAH 26.1), and in March next year - to UAH 30.1.
The same increase - 15.3% - will be applied to the minimum prices for other fermented beverages (cider, etc.) According to the resolution, wholesale price for them will grow from the current UAH 96.24 per liter of 100% alcohol to UAH 103, and from March 1 - to UAH 110.6, retail price - respectively, from UAH 142 first to UAH 154, and then to UAH 163.8 per liter of 100% alcohol.
In addition, the government decided to raise the minimum price of cognac, although the day before the Minister of Agrarian Policy Mykola Prysyazhnyuk had stated otherwise. According to the resolution, the minimum wholesale prices for cognac in the coming days will increase by 2,6 - 6,2%, while retail prices - by 17.6% - 20.2%.
However, the minimum price for wine remained unchanged - UAH 18 - 26 per 0.7 liter bottle at retail.
Minimum prices for alcohol were returned at the end of October 2008 at the request of alcohol companies. The last time the government of Ukraine reviewed them was in August 2011.
The Ministry of Finance initiated a price increase for spirits and alcoholic beverages back in September this year. This decision the Finance Ministry justified due to the fact that "the current level of minimum prices does not reflect the true level of production costs." However, the MAP opposed such an initiative.
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