Naftogaz to Keep Residential Prices Down

Naftogaz Ukrainy and government representatives have agreed a new mechanism for price regulation, the state gas monopoly said April 22.

From now on, Naftogaz can not just avoid raising household tariffs for gas and heating from May 1, but it will actually lower them to hryvnia 8,247/’000m³ inclusive of all costs and taxes.

The prices and methodology were agreed at a meeting between the prime minister Vladimir Groisman and Naftogaz CEO Andrei Kobolev.

The new system allows prices to fall if the market price for industrial consumers is lower  than the price set by last year’s October 19 council of ministers’ decree 867. If the industrial price is higher at the review date, then residential customers pay the same as before. Naftogaz expects that all the contracts with middlemen who buy gas for the population will be amended during May this year.