Gas price for households will decrease from May 1 / Photo from UNIAN
The price will be set at US$305.5 per 1,000 cubic meters.
The Cabinet of Ministers and National Joint-Stock Company Naftogaz of Ukraine have agreed to reduce the regulated gas price for households and thermal power plants for May 2019, to UAH 8,247 (US$305.5) per 1,000 cubic meters.
The price was approved at a meeting with the participation of Prime Minister of Ukraine Volodymyr Groysman and Naftogaz CEO Andriy Kobolyev, Naftogaz's press service said.
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"At the Cabinet's request, NJSC Naftogaz of Ukraine, together with government representatives, developed a new mechanism for determining the regulated price, which allows [the company] not only to avoid an increase in gas tariffs for the population and heat generation from May 1, 2019, but also to reduce it to UAH 8,247 per 1,000 cubic meters (final retail price)," it said.
"This mechanism provides the following approach to pricing: if the market price of gas for industrial consumers is lower than the rate set by the Cabinet of Ministers of Ukraine on October 19, 1998, No. 867, the price for households will decrease accordingly. If the market price of gas for industry increases above a certain government level, then the price for households will remain at this level," the company said.
Changes to the existing gas sale agreement between Naftogaz and all counterparties that purchase gas under the "On Public Service Obligations (PSOs)" Regulation are expected to be introduced during May 2019.
Naftogaz earlier proposed that the PSOs be cancelled from May 1, 2019, which would increase gas prices for households by 15%, or that gas prices be brought to the market level.
Prime Minister Volodymyr Groysman on April 17 threatened to dismiss Kobolyev if the gas prices for households were not reduced by April 24 below the limit set at UAH 8.55 (US$0.317) per cubic meter.