The Naftogaz of Ukraine national joint stock company has raised the price at which it supplies natural gas to households under its public service obligation (PSO) by UAH 1,223 or 28.6% to UAH 5 500 per thousand cubic meters (excluding VAT and transmission costs) in January 2020. Naftogaz of Ukraine announced this in a statement, Ukrainian News Agency reports. "In January 2020, the wholesale price of gas for the needs of the population, heat producers, and other protected customers to whom Naftogaz of Ukraine supplies gas under its PSO will be UAH 5,500 per thousand cubic meters. This is 12% less than the price in January 2019," the company said in the statement. According to the statement, this price equals the quarterly guaranteed price that Naftogaz of Ukraine offered to all protected customers for the period from January to April 2020. “Our task is to inform customers about the risks and give them the right to choose, since the monthly cost of gas could be higher or lower than the guaranteed price during the first quarter of 2020. They will remain unchanged in January, but it is difficult to predict what situation will be in February. We propose that people insure themselves against the risk of a sharp price increase by taking advantage of the guaranteed price. It allows us to make gas costs more predictable until the end of the heating season," said Andrii Favorov, the head of Naftogaz of Ukraine’s integrated gas business. As Ukrainian News Agency earleir reported, Naftogaz of Ukraine raised the price of natural gas for households by UAH 622 per thousand cubic meters or 12.69% to UAH 4,277 per thousand cubic meters (excluding VAT and transmission costs) under the terms of its public service obligation (PSO) in December. The Cabinet of Ministers changed the procedure for calculating gas prices for households in June. The Cabinet of Ministers established that the price of gas under public service obligation to supply natural gas to households and heating utilities should equal the lowest of the following (excluding VAT): the average import price; the weighted monthly average price on the Ukrainian Energy Exchange; the Naftogaz of Ukraine national joint stock company’s arithmetic average price for industrial clients on prepayment terms; the price based on the formula previously approved by Cabinet of Ministers resolution No. 867 of October 19, 2018.