09:48 22.05.2018

Naftogaz says rise in gas prices for industrial consumers linked with 8-12% rise in price in Europe

1 min read
Naftogaz says rise in gas prices for industrial consumers linked with 8-12% rise in price in Europe

The decision of NJSC Naftogaz Ukrainy to raise natural gas prices for industrial consumers to UAH 9,953 for 1,000 cubic meters (including VAT) is associated with the growth of its prices in the European market.

"Over the past month, wholesale gas prices in the European market have increased by 8-12%. We are also forced to raise prices for our commercial consumers," Naftogaz said on Facebook.

The company said that prices in the commercial segment are determined by supply and demand, and buyers can freely choose among several other producers and importers of gas that determine their own price, while Naftogaz is only one of the suppliers.

The company proposes to monitor changes in the wholesale market price at various European hubs, in particular, on the hub nearest to Ukraine, Austrian-Slovak CEGH, and the nearest liquid hub, Germany's NCG.

As reported, Ukraine from October 1, 2015 canceled state regulation of gas prices for all categories of consumers, except for the population and heating companies for the needs of the population. Since that time, Naftogaz Ukrainy has been supplying gas to industrial consumers, budget organizations and other business entities on market terms.

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