Gas prices in Ukraine are to grow by 15% from May 1 / Photo from UNIAN
Ukraine undertook to further raise gas prices for households in 2019 but Naftogaz's CEO says the increase is not necessary in view of falling prices in Europe.
Ukrainian Prime Minister Volodymyr Groysman will instruct National Joint-Stock Company Naftogaz of Ukraine and the Ministry of Finance of Ukraine to begin negotiations with the International Monetary Fund (IMF) on not raising gas prices from May 1 this year, given the decline in European prices.
"Today I will instruct Naftogaz, jointly with the Finance Ministry, to start a working discussion with the International Monetary Fund to resolve this issue and prevent any gas price hikes, relying on the proposal of Naftogaz," Groysman said during a Q&A session in parliament on Friday, March 15.
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On March 14, Naftogaz CEO Andriy Kobolyev said that the price of gas on the European market had fallen below the rates it is now sold to households in Ukraine, which were set by the Ukrainian government in its resolution on October 19, 2018.
Considering this, Naftogaz, in order to create competitive relations on the gas market for the population, proposed the government cancel state regulation of gas prices for households so that people could choose a supplier with the best price, as is now the case on the industrial consumer market.
In October 2018, the Cabinet of Ministers raised gas prices for the population by 23.5% from November 1, to UAH 8,550 (about US$316) per 1,000 cubic meters.
Ukraine pledged to raise gas prices for households by 15% from May 1, 2019, and further from 2020 to equate gas prices to the market ones, as is stipulated in the memorandum on economic and financial policies under the Stand-By Arrangement between Ukraine and the International Monetary Fund.