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Economy 2020-01-15T04:03:40+02:00
Ukrainian news
Naftogaz Set Guaranteed Gas Price For Population At UAH 5,500 Per Thousand Cubic Meters

Naftogaz Set Guaranteed Gas Price For Population At UAH 5,500 Per Thousand Cubic Meters

Naftogaz, gas, guaranteed price, gas price for population

The Naftogaz of Ukraine national joint stock company set a guaranteed price for natural gas for the population at the level of UAH 5,500 per thousand cubic meters (excluding VAT and transportation costs).

Naftogaz has said this in a statement, Ukrainian News Agency reports.

It is reported that this price is by 12% lower than the regulated price at which Naftogaz sold gas to protected consumers in January-April 2019 (then the wholesale price for consumers under the terms of public service obligation (PSO) was UAH 6,236 per thousand cubic meters).

“The final retail price for household consumers in each region depends on the cost of gas transportation by main and regional pipelines, as well as on the margin of gas sellers. Taking into account current transport tariffs, the final retail price with VAT will be from UAH 7.2 to UAH 7.8 per cubic meter of gas (against UAH 8.5 per cubic meter in the first quarter of 2019),” the company noted.

It is noted that the guaranteed price will be valid for both domestic consumers and producers of thermal energy, which will avoid a sharp increase in the cost of services for the supply of heat and hot water.

This price will be valid from January 1, 2020 until the end of the heating season and all households and heat producers will automatically receive gas at a guaranteed price.

Besides, any consumer can refuse the offered guaranteed price and choose a monthly market price, in this case they need to contact their regional sales company from December 10 to December 24.

As Ukrainian News Agency earlier reported, the Cabinet of Ministers amended the provision on public service obligation (PSO) to introduce a fixed guaranteed price for gas for household consumers and heat producers in the amount of UAH 6,961 per thousand cubic meters, which will operate from January 1, 2020 to April 30, 2020.

For domestic consumers and heat producers who refuse the guaranteed price, and in the case of a non-signing of a transit contract with the Gazprom company (Russia), their gas purchase costs may increase by 45%.

Earlier, Minister of Energy and Environmental Protection, Oleksii Orzhel, said that the price of natural gas for the population in the first quarter of 2020 will be below UAH 8,550 per thousand cubic meters, and that if a transit contract is signed with Gazprom, the gas price in the 2019/2020 heating season will be historically low.

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