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NJSC Naftogaz of Ukraine explains how it is going to increase prices of natural gas for Ukrainians.
Prices of natural gas for Ukrainian households are to soar to market levels from January 2020.
"What is the situation from January? The price will be a market-oriented one. It is determined as the arithmetic mean of the price for the industry. And we have absolutely market-oriented prices there," Director of NJSC Naftogaz's LLC Gas Supply Company Maksym Rabinovych told the online publication Glavred.
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He explains Naftogaz does not determine the price of gas for Ukrainians – it only chooses the lowest of the four proposed indicators, but the gas price for households in Ukraine will change from January 1, 2020 and its direction will be upward.
This is stipulated in a law that repealing from January 1 special obligations of Naftogaz.
In particular, Ukraine has an agreement with the International Monetary Fund (IMF) that gas prices for the population should rise to UAH 12,300, or about US$492 per 1,000 cubic meters from January 1, 2020.
The only chance for a reduction is if natural gas in Europe is cheaper, then Ukraine, having purchased it for less money, could reduce the tariff for the population, without violating the agreement with the Fund.
At the same time, head of the Verkhovna Rada committee on energy and housing and communal services, MP Andriy Gerus said that gas tariffs for the population would be reduced by UAH 115, or US$4.6 per 1,000 cubic meters from September 2019.