Naftogaz will reduce the price of gas for consumers in June by 7.3%

NJSC Naftogaz of Ukraine has calculated the new price of natural gas for the needs of the population and other PSO consumers, which will be valid in June – in accordance with the Cabinet of Ministers of Ukraine resolution No.485 of June 5, 2019, it will be 5.553.89 UAH per 1 thousand cubic meters (excluding VAT, shipping costs and supplier margins).

The final price of gas for consumers in Kirovohrad region, including VAT, delivery costs and supplier margins in June will amount to 7.755.87 UAH. The final price in other regions depends on the gas distribution tariff set by the national regulatory Commission for the respective region or city gas authority. Gas suppliers are required to inform their consumers about the final price.

“In the spring of this year, Naftogaz’s analytical service provided conclusions that gas prices are expected to decline on the European market – where we import gas from and where we have the largest partners. Then we offered the government to change the approach to the formation of gas prices in Ukraine, to switch to market pricing. It would be just not fair to keep the regulated price at the same level as the market price falls. Therefore, we have proposed several options on how to do it correctly – one of the options adopted by the government will begin in June”, said Naftogaz’s Board Director Andriy Kobolyev.

Government Resolution No.485 provides that Naftogaz analyzes 4 indicators for determining the price of gas for PSO – the price for commercial consumers for the past month, the Ministry of Economic Development and Trade data on the average customs value of gas for the last month, the average weighted price on the Ukrainian Energy Exchange, and the price for the government Resolution No.867 of October 19, 2018 – the company chooses the lowest of them. The lowest price was on the Ukrainian Energy Exchange – it determined the price for June.

“The new mechanism demonstrates the advantages of a competitive market. The price changes in parallel with market parity and, thanks to this, the consumer receives fair conditions. We hope that in the near future the government will also agree with our proposal for the complete abolition of price regulation, in addition to transparent pricing, will allow the end consumer to choose a gas supplier”, concluded Andriy Kobolyev.


Tags: The Cabinet of Ministers, gas, Naftogaz, contracts, Kobolyev, legislation, Top management, gas production, gas transit, GTS

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