Cabinet raises gas price for population

Wednesday, April 27, 2016 - 16:40 (EEST) Section: Latest news

The Cabinet of Ministers, as planned, has set a single gas price for the population at the level of UAH 6,879 per 1,000 cubic meters.
Presenting the decision, First Deputy Prime Minister Stepan Kubiv and Minister of Energy and Coal Industry Ihor Nasalyk said that the establishment of such a price would put an end to speculation on the gas market.
In turn, Prime Minister Volodymyr Groysman said that this was not an easy decision, and it would provoke much public debate, but it would allow abolishing all previous schemes, which allowed making money on a difference in the price of fuel.
”Based on the predicted gas prices in the European market, as well as the cost of transporting gas to the western border of Ukraine, the price of gas as a commodity is set at UAH 4,942 per 1,000 cubic meters,” Kubiv said.
”The maximum amount of retail gas prices for households with all tariffs and VAT is set at UAH 6,879 per 1,000 cubic meters. At the same time, a retail price for domestic consumers will be decreased from UAH 71.89 to UAH 68.79 per one cubic meter. This corresponds to import parity and completely eliminates possible corruption risks related to the gas price difference,” he said.
Kubiv also said that the price of gas for religious organizations is set at UAH 3,913 per 1,000 cubic meters, in addition to the volumes that are used for industrial and commercial activities. The price of gas for NJSC Naftogaz Ukraine, used for the production of heat and hot water, will amount to UAH 4,942 per 1,000 cubic meters, excluding tariffs for transport services and extra charges to the price of fuel.
The average target price of imported natural gas to Ukraine will amount to $185 per 1,000 cubic meters from May to December 2016, Kubiv said.
According to Groysman, the establishment of a single gas price will affect only those who have made profit from the difference in prices. At the same time, he recalled that the total amount of money spent on compensation for the difference between the market price of gas and the price of its actual implementation had already reached about $50 billion.