Naftogaz to cut gas prices for Ukrainian households

Director of Integrated Gas Division at NJSC Naftogaz of Ukraine Andriy Favorov says the company will cut prices of natural gas for households by 10.4% in July 2019.

"In July, we'll reduce the price [of natural gas] for households by 10.4%," he said at a meeting with Ukrainian President Volodymyr Zelensky on July 11, the presidential press service reported, adding that the relevant order had already been signed.

Read alsoNaftogaz reduces gas price for households

Favorov also noted that the reduction in the price did not contradict the terms of cooperation with the International Monetary Fund (IMF), as the move is a reaction to the situation on the gas market.

According to Favorov, the volume of natural gas on the European gas market has increased due to supplies of liquefied fuel from Russia and the Unites States, which contributes to lower wholesale prices.

Therefore, Ukraine has increased the purchases of gas, pumping it into its underground storage facilities (USFs). As of today, 14.2 billion cubic meters (bcm) of gas has already been injected into the USFs. It is planned to increase its volume to 19-20 bcm by the start of the forthcoming heating season.

In turn, Deputy Head of the Office of the President of Ukraine Oleksiy Honcharuk drew attention to the fact that Ukraine may influence the gas price by increasing its own production. In his opinion, the potential for this is primarily in encouraging the use of already obtained gas production licenses.

"This direction should be a priority. It is also necessary to make every effort to attract strategic investors in this sphere. To this end, we will arrange transparent, well-prepared auctions, so that an investor has enough time to provide a high-quality offer," Honcharuk added.

As UNIAN reported earlier, Ukraine's Cabinet of Ministers on April 3 adopted resolution No. 293 to allow Naftogaz to set the price of gas for households below the ceiling price of UAH 8.55 ($0.33) per cubic meter.