Prime Minister Volodymyr Groysman had initiated discussions with the International monetary Fund inexpediency of increase of tariffs for gas for Ukrainians. He instructed state-owned companies “Naftogaz” and the Ministry of Finance to prepare a working discussion with the IMF on the closure price increase.
Prime Minister of Ukraine
“Yesterday “Naftogaz” stated that he buys cheap gas. We have a price limit — 8550 UAH per thousand cubic meters. And they (“Naftogaz” — ed.) say that you can avoid further increases [in gas tariffs for the population] … So I will give instructions to Naftogaz and the Ministry of Finance to start a working discussion with the International monetary Fund, in order to resolve this issue based on the proposal of “Naftogaz”
We will remind, the head of Board of “Naftogaz” Andrey Kobelev noted the decrease in April 2019 the price of imported gas to below a specified population level, approved by the resolution of Cabinet of Ministers about PSO, reports Finbalance.
So, “Naftogaz” has carried out the purchase of gas from Slovakia at a price equivalent 5981 UAH/thousand cubic meters. VAT and costs for transportation and supply, this corresponds to a retail price at around 8380 UAH/thousand cubic meters. And the population, according to the ruling, pays 8550 UAH per thousand cu. m. Therefore, KOBOLEV asked the government to cancel the special obligations and open market household customers to competition between suppliers.
We will remind, in September 2018, the IMF has replaced the financial assistance program EFF, which operated from 2015, on Stand-by. An important condition for granting new tranches was the increase in gas prices for the population. On October 19 the Cabinet decided to raise the price of “blue fuel” for the population 23.5% from November 1, 2018.
Ukraine has also committed itself to the International monetary Fund to raise the price of gas for the population by 15% from may 1, 2019, and 2020 to equalise prices for the population with the market. According to calculations, from 1 may 2019 to 31 December 2019 the price of gas for Ukrainians will be about 9851,66 hryvnia for 1 thousand cubic m. And from 1 January 2020 the market price of gas will reach approximately 12313,85 of the hryvnia.
Earlier the gas price for population and CTV was 4942 hryvnia per thousand cubic meters, and for the final consumer, including VAT and fees — 6958 UAH/1000 CBM