The Ukrainian Economy Ministry has proposed to the Ukrainian cabinet to cancel a decision to peg the price of Ukrainian-made oil sold at auctions to the customs price of Russian oil imported to Ukraine, a well-informed source on the market has told Interfax-Ukraine.
The source described the proposed amendments to the procedure for holding of auctions.
According to the proposals, the initial price for each bid at oil, gas condensate, liquefied gas, natural gas and coal auctions and at special auctions to sell liquefied gas to households is set at the level of prices registered at the previous auction.
At present, a requirement, according to which the initial price without VAT is set by sellers, taking into account the level of world prices, was added to the procedure for selling the said energy sources in cabinet resolution No. 1405 of December 23, 2009. The level of initial prices for oil and gas condensate is set based on data from the State Customs Service regarding the customs price of oil and gas condensate ten days before the registration of bids made in auctions to sell oil and gas condensate.
The source on the market told Interfax-Ukraine that the proposals to change the procedure were considered and approved at a recent cabinet meeting.
The source said that final approval is expected after agreement of the proposals with profile ministries and bodies this week.
