Economy

Naftogaz cuts price of gas for public in June by 11.8% from previously announced figure

National joint-stock company Naftogaz Ukrainy has calculated the new price of natural gas for the needs of households for June, setting it at UAH 5,553.89 per 1,000 cubic meters (VAT, delivery costs and supplier markup are not included), the press service of the company has reported.

This price is 11.8% or UAH 746 lower than the price for June announced earlier (UAH 6,299 per 1,000 cubic meters).

The company said that the price was calculated in accordance with government resolution No. 485 dated June 5, 2019, according to which Naftogaz takes the smallest of the four indicators when determining the gas price for households. In particular, these are the following indicators: the price for commercial consumers for the past month, the average customs value of imported gas for the previous month, the average price at the Ukrainian Energy Exchange, and the price of gas under public service obligations (PSO) set in resolution No. 867 dated October 19, 2018 at the level of UAH 8,550 per 1,000 cubic meters.

"The new mechanism shows the advantages of a competitive market. The price changes in parallel with market parity and thanks to this, the consumer receives fair conditions. We hope that the government will soon also agree with our proposal to completely cancel price regulation, which in addition to transparent pricing, will allow the end consumer choose a gas supplier," the press service said, citing Chairman of Executive Board of Naftogaz Ukrainy Andriy Kobolev.

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