The price of gas for the population decreased in May

In May 2020, the wholesale price of natural gas for the needs of the population, heat producers for the population and other protected consumers, to whom Naftogaz of Ukraine supplies gas as part of PSO, decreased to UAH 2.3 per cubic meter (excluding VAT, margins of gas sales and gas transnission costs by main and distribution pipelines). This was reported by the press service.

It is noted that this is 21% less compared to April 2020.

In general, since the beginning of the year, the price of PSO has decreased by 51%, compared to the same period last year, the fall in gas prices reached 62%.

According to analysts of Naftogaz, in May the price of gas in Europe reached a historic low over the past 10 years. In Ukraine, the price is also additionally affected by the high level of filling of underground gas storages, where, due to preparation for the previous heating season and warm winter, the state actually accumulated annual gas production – 17.5 billion cubic meters.

“The price situation on the market contributes to the Government’s intentions to liberalize the gas market for the population from July 1 of this year. In the inter-heating season, there are fewer prerequisites for price increases than in the cold season. Historically low prices, large gas reserves in European and Ukrainian storages and the summer period – all this will allow a smooth and safe transition for Ukrainian consumers to a free market,” said Andriy Kobolyev, Chairman of the Board of Naftogaz.

Recall that from January 2020, the wholesale price of natural gas in the framework of PSO is calculated in accordance with the Resolution of the Cabinet of Ministers of Ukraine No.17 dated January 24, 2020. The main indicator in this case is the actual results of exchange trading, which occurred from the 1st to the 22nd day of the billing month at the largest gas hub in Europe (TTF).

However, in March, a new liquid price indicator appeared on the domestic market. Operator of the gas transmission system of Ukraine LLC held a tender for the purchase of gas for the period of supply March-December 2020.

Accordingly, when calculating the gas price for the population in May, Naftogaz, as in April, chose from two possible options: calculated according to the Resolution of the CMU and the average weighted price of the winners based on the results of the bidding for the supply of gas to the Ukrainian GTS Operator.

Tags: The Cabinet of Ministers, gas, Naftogaz, contracts, Kobolyev, tariffs, EU, energy market, UGSF, gas production, foreign affairs, heating season, unbundling, PSO, Gas market, облгаз, stocks, GTS Operator, price, OGTSU, коммунальные платежи, infrastructure, natural gas, gas supply, population, энергетическая безопасность, power system

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