Ukraine Cuts Domestic Gas Prices

 Ukraine's households, district heating companies and other entities covered by the public service obligations saw their gas price – excluding tax, margins and capacity costs – fall 15% in April relative to March. They will pay hryvnia 2.9/m³ ($107/'000 m³), said the state supplier Naftogaz Ukrainy April 23.

As of January this year, the price for these consumers has been calculated in accordance with a government decree, which takes the Dutch gas hub price as its starting point. Since March however the Ukrainian market has an exchange-based price that may also be used as it is considered liquid enough.

"Despite the record collapse of energy prices on world markets, the it was the domestic indicator, not the foreign one, that set the lower price," said Naftogaz. The April price, using Ukraine's exchange, is 18% lower than the one calculated using the government decree.

"Lowering prices for the third month running is a positive signal for the population. April's gas bills must fall, both because of the end of the heating season and because of Naftogaz' lower price. I hope that this will lower the burden on Ukraine's households as they suffer the consequences of the quarantine measures," said Naftogaz CEO Andriy Kobolev.