Given the decline in gas prices on the European market, the Ukrainian government and the National Joint-Stock Company Naftogaz Ukrainy have agreed to cut regulated gas price for households and heat producers to market level in May from UAH 8,550 ($321) per 1,000 cubic meters to UAH 8,247 ($310).
“Upon the order of the Cabinet of Ministers of Ukraine, Naftogaz and government representatives have developed a new mechanism to calculate regulated gas prices. Not only will this solution help to avoid an increase in gas price for households and heat producers on May 1, but it will also allow for a reduction in gas price to UAH 8,247 per 1,000 cubic meters (retail price),” the company’s press service said on.
The new mechanism is based on the following pricing principle: if the market price for industrial users is lower than that stipulated in CMU Resolution No. 867 of October 19, 2018, the price for households must be adjusted downwards accordingly. If the market price for industrial users is higher than the level set by the government, the price for households stays at this level, the report said. The relevant amendments to current gas sales agreements between Naftogaz and all counterparties buying gas under the Regulation on Public Service Obligations are expected to be made during May. (UNIAN/Business World Magazine)
