The Cabinet of Ministers of Ukraine has changed a mechanism for formation of the price of natural gas sold for the needs of households and heat suppliers intending to cut it as much as possible.

The decision was made on June 5.

According to the draft resolution submitted for approval, the text of which Interfax-Ukraine has, the government obliged NJSC Naftogaz Ukrainy to use the minimum of four proposed figures to form the gas price for households.

The first figure is the average cost of imported gas set in the process of its customs clearance (for the month that precedes the month of delivery to households, it is published by the Economic Development and Trade Ministry).

The second figure is the average price of the monthly amount of natural gas for the gas sale/delivery month based on the results of electronic exchange trading on the Ukrainian Energy Exchange before the beginning of this gas month.

The third figure is the average arithmetic price of gas sold by Naftogaz to industrial consumers (subject to prepayment), which was in effect in the gas month preceding the month of sale to households.

The fourth figure is the price calculated according to the previously approved gas cost formula under public service obligations (PSO).

In turn, Naftogaz, responding to the government's decision, said that they had already reduced the wholesale price in the domestic market in accordance with changes in the price of imported gas. They also added that, depending on the tariffs for transportation and distribution, the final retail price of gas for households in July will be from UAH 7,600 per 1,000 cubic meters to UAH 8,200.