Government to cap gas price for households Jan 18 – media.

Photo from UNIAN

Photo from UNIAN

The Cabinet of Ministers on Monday plans to set a cap on gas prices for households at UAH 6.99 per cubic meter.

That's according to Economic Pravda citing a government source.

The cap will be in effect pending the quarantine period, but no longer than September 31.

The price of UAH 6.99 per cubic meter (including VAT) does not include distribution costs.

Read also Shmyhal comments on whether gas pricing innovations to hinder cooperation with IMF The price of the "last resort supplier" will also be set at UAH 6.99 per cubic meter.

Background

A new gas price has been in effect in Ukraine since January 1, offered by gas suppliers as part of the competitive gas market launched in Ukraine for the households. In June 2020, the procedure for changing gas suppliers for household consumers was simplified as part of the implementation of structural beacons put forward by the International Monetary Fund to pursue the Stand-By Arrangement for Ukraine.

Gas supplying companies offer to buy gas in January at a price from UAH 6.99 to UAH 10.8 per cubic meter, while the minimum price is 11% higher than that in December and the maximum price is 20.5% higher.

In addition, new tariffs for gas transmission were introduced from January 1.

The energy regulator NEURC has increased tariffs for the services of 43 gas distribution companies by an average of 1.6 times from January 2021.

President of Ukraine Volodymyr Zelensky, responding to a number of rallies held in some regions, instructed the government to urgently address the issue of gas tariffs for households.

On January 13, the Cabinet said it would offer to set a fixed price for household consumers at UAH 6.99 per cubic meter, which will cut the bills by 30%.

The IMF met the news with concern, according to PM Denys Shmyhal.

On January 14, the Cabinet held a constructive meeting with the IMF mission as regards gas prices in Ukraine.

Author: UNIAN

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