Naftogaz did not support planned (from May 1st) gas price increase in Ukraine
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Naftogaz did not support planned (from May 1st) gas price increase in Ukraine

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Naftogaz CEO Andriy Kobolev suggested to the Cabinet of Ministers to consider the possibility of full liberalization of natural gas supply for all categories of consumers from April 1, 2019. It will give a possibility not to raise the gas price. It was stated in a letter from Kobolev to Prime Minister Volodymyr Groisman, according to Ekonomichna pravda.

Naftogaz CEO claims that the company has purchased gas in Slovakia at a price equivalent to 5981 UAH / thousand cubic meters. Taking into account VAT, transportation and delivery costs, it corresponds to the retail price at the level of approximately 8380 UAH / thousand cubic meters.

Thus, for the first time, the price of gas purchases in the European market has fallen below the level stipulated by the current Cabinet decision, which today amounts to UAH 8550 per 1 thousand cubic meters.

Kobolev is convinced that if it is possible for Ukrainian households to freely choose a supplier of natural gas, it can reasonably be expected that the price offered to them by the competitive market will be less than the current regulated price.

The liberalization of natural gas supplies involves the abolition of the ASD regime (the assignment of special duties) and the removal of existing restrictions on the change of natural gas supplier currently used by private gas companies.

It should be reminded that according to the ASD resolution, gas prices for the population will be 80% of the import price, and from January 1, 2020 – 100%. That is, the price of gas for the population should rise to 9,852 UAH per 1 thousand cubic meters from May 1, 2019, and may also increase to 12314 UAH from January 1, 2020.