Photo from UNIAN
The hike, which is a result of negotiations with the International Monetary Fund, is scheduled for November this year.
The Cabinet of Ministers of Ukraine will raise the price of natural gas for the Ukrainian households by 23.5%, to UAH 8,550 per 1,000 cubic meters from November 1, Prime Minister Volodymyr Groysman said at an extraordinary government meeting held Friday.
"We were starting negotiations [with the IMF] from the need to level out prices by 60%, to increase the current price by 60%. However, as a result of our negotiations and compromises, we found another approach. Prices from November 1 will increase only by 23.5%, not by 60%. This is what we managed to achieve as a result of these negotiations through incredible efforts," said Groysman.
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As UNIAN reported earlier, the Cabinet of Ministers had decided to postpone the rise in prices of natural gas for households, which were due to be increased from April 2018. The relevant resolution provides for the extension of special public service obligations (PSO) of National Joint-Stock Company Naftogaz of Ukraine with regard to gas sales to regional gas companies and district-level central heating providers without a change of price until June 1, 2018. On May 30, the Cabinet extended the special obligations for Naftogaz to sell gas for the needs of households until August 1, 2018, on July 26 – until September 1, on August 29 – until October 1, on September 28 – until October 18.
Gas prices for households are set at UAH 6,958, or US$261, per 1,000 cubic meters. It is UAH 4,942, or $186, excluding VAT and transmission costs.
The issue of gas prices for households is the subject of talks between Ukraine and the IMF. The IMF insists that gas prices on the domestic market be adjusted (raised) to achieve parity with the price of imported gas. At the moment, bringing the prices to import parity corresponds to a 30% increase.