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The price of natural gas for the population from April 1, 2017, could grow by 40% compared with the current cost of UAH 6.8 per cubic meter if the state fails to regulate the price by the decisions of the Cabinet of Ministers, and the pricing will be influenced by market factors, Director for Business Development at Naftogaz Yuriy Vitrenko wrote in his column published by Novoe Vremya.
"If the state regulation of prices for the households is not extended, or the so-called "special obligations" [of Naftogaz to provide gas to the population at fixed prices], then based on the current gas prices in the European markets, the hryvnia rate and other factors, we can expect that the price of gas for the households will increase by 40%," Vitrenko said.
He added that the price hike would be avoided if the state retained control over pricing.
Read alsoNaftogaz buys gas from 15 European suppliers in 2016"If the state regulation is extended, which is yet to be agreed with the IMF because the government promised in the memo that the specific obligations were introduced only until April 1, then the price increase may be postponed until October," he said.
According to Vitrenko, an important factor for the pricing of gas would be a judgment of the Stockholm Arbitration on the suit by Naftogaz against Gazprom over the gas purchase contract breach.
Read alsoGazprom continues to violate conditions of gas transit contract - Ukrtransgaz"We hope that the Stockholm Arbitration will satisfy our claim to Gazprom, and we will import gas at the price "minus hub." Then we can expect that the wholesale price for the households will drop twofold compared with the current price," he wrote, adding that if there is no positive ruling before October 1, 2017, it is possible to expect an increase in wholesale prices of gas by 47%.
As UNIAN reported earlier, the national energy and utility regulator increased central heating tariffs in Ukraine by an average of 75-90% by a corresponding decision taken at the agency's meeting May 5. The rate of an increase will depend on a specific supplier.
Read alsoSome 9.6 bcm of gas remains in Ukraine storagesThe government of Ukraine on May 1 set a single price of gas for the households at UAH 6.88 per cubic meter (UAH 6.879 per 1,000 cubic meters), which is equal to the purchase price of natural gas imported to Ukraine.
As the Cabinet took its decision on the gas price on April 27, First Vice Prime Minister of Ukraine Stepan Kubiv and Minister of Energy and Coal Industry Ihor Nasalik noted that the establishment of such a price put an end to speculation on the gas market.
Prime Minister Volodymyr Groysman said that this decision was not an easy one as it would spark much popular debate, but it will allow eliminating all shady schemes, which allowed making profits on a difference in the price of gas.