The price of gas to be reduced by more than 30%. But only for the period of quarantine

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January 13, after massive protests in the regions, President of Ukraine Volodymyr Zelensky convened the meeting with the Cabinet of Ministers, representatives of The National Commission for State Regulation of Energy and Public Utilities, as well as the head of Naftogaz of Ukraine and experts in economics, electricity and gas industry. The issue of high gas prices for citizens of Ukraine was resolved. As a result, a decision to reduce the price of gas was made, however, only for the quarantine period.

“Market prices are too high today, especially given the pandemic. We as a state must stand up for the protection of our citizens, which means – in economic terms as well, “- said Vladimir Zelensky during the meeting.

During the meeting, it was decided to reduce the price of gas below the market price. This means a reduction in people’s payments by more than 30%. But this will be only applicable for the quarantine period or until the end of the heating season.

“Today at the meeting a decision was made to introduce of state regulation of gas prices for the period of the quarantine. This does not mean that we are moving away from market regulation of gas prices, but since the situation with quarantine restrictions is currently extremely difficult, with COVID pandemic, with the possibility for people to receive additional income, state regulation will be introduced. Approximately today, some regional gas companies are selling at a price of more than 10 hryvnias, ie with the introduction of this regulation, the price of gas will be reduced by more than 30%”, the Office of the President of Ukraine quotes Prime Minister Denys Shmygal.

According to the government’s website, it is proposed to set the price at UAH 6.99 per cubic meter for all household consumers.

As reported by Acting Minister of Energy Yuriy Vitrenko, this decision should be implemented and fully operational as early as February: “That is, from February 1, all Ukrainian consumers will pay significantly less for natural gas. I can say that, according to our data, the average price of gas in Ukraine in January was higher than 9,600 hryvnias. Accordingly, the price will be reduced on average for the population of Ukraine to 6,999 hryvnias. ”

“In addition, there are a number of decisions on gas distribution prices – the so-called subscription fee. We also worked on this with the profile committee, deputies of the Verkhovna Rada – we will ask for the adoption of a bill and reduce the price in the field of gas distribution and reduce this subscription fee”, – added Denis Shmygal.

Read also “The National Bank kept the inflation forecast for 2021 unchanged. Experts have different opinions”

Translation: Liudmyla Lozhevych


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