Prime Minister of Ukraine Denys Shmyhal today at a government meeting said that the Cabinet of Ministers would introduce state regulation of gas prices for the period of quarantine or until the end of the heating season; the proposed price is UAH 6.99 per cubic meter. According to him, this means a decrease in payments of people by more than 30%.
“Due to the COVID-19 pandemic, the quarantine restrictions imposed in Ukraine, the sharp and exorbitant rise in gas exchange prices for Ukrainians during quarantine in recent weeks, it is proposed to introduce state regulation of gas prices in Ukraine for all household consumers during the quarantine period or until the end of this heating season, ”he said.
According to him, the price of UAH 6.99 per cubic meter today is the lowest price on the Ukrainian stock exchange. However, some regional gas companies now sell gas to household consumers for UAH 10 and even higher.
Shmyhal instructed the Ministry of Energy, the Ministry of Economy, the Ministry of Justice and other central government bodies to urgently prepare a draft resolution of the Cabinet of Ministers of Ukraine on the introduction of state regulation of gas prices during the quarantine period.
He also noted that the decision on state regulation of gas prices does not mean that the government refuses to develop the gas market in Ukraine.
“After all, the approach, when the price of gas regulates supply and demand, works in all developed countries. Gas is becoming the same commodity like bread or Internet services. Competition means the elimination of the monopoly of individual gas suppliers, who earned excess profits, and therefore were interested in the market never to work,” the prime minister stressed.
Earlier, economist Pavlo Kukhta said that to help Ukrainians survive the rise in gas prices, the state should not return to manual price regulation and quarrel with the IMF, but instead improve the subsidy system.
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