17:21 28.01.2020

Price of gas for households, heat suppliers in Jan to be UAH 4.65 per cubic meter without VAT, transport costs – Naftogaz

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Price of gas for households, heat suppliers in Jan to be UAH 4.65 per cubic meter without VAT, transport costs – Naftogaz

The price of gas supplied by NJSC Naftogaz Ukrainy for the needs of households and heat producers in January 2020 will be UAH 4.65 per cubic meter (VAT, pipe transportation costs and gas distributors' markups not included), which is 25% less than in January 2019.

"The new price has been calculated by Naftogaz in accordance with the Cabinet of Ministers resolution No. 17 dated January 24, 2020. Thus, Ukraine is fulfilling its obligations to the IMF on the gradually transition to a gas market with free pricing and competition for domestic consumers between many gas suppliers," Naftogaz said in a press release.

The company recalled that according to the new method, the price for the current month is determined according to the actual exchange trading that took place from the 1st to the 22nd day of this month. Naftogaz will continue publishing the price for the current month for several business days after the 22nd day.

"Thanks to the signing of a contract for the transit of Russian gas through Ukraine, there was no price crisis on the gas market. Moreover, large unused gas stocks in European countries' storage facilities contributed to lower prices in European markets. The Cabinet of Ministers and Naftogaz found a solution that allowed them to reconsider January gas price for protected consumers towards decreasing. In fact, the price has been reduced to market conditions," Head of Naftogaz's integrated gas business unit Andriy Favorov said.

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