Ukraine pays US$209.65 per 1,000 cubic meters of gas imported in March

Ukraine paid an average price of US$209.65 per 1,000 cubic meters of natural gas imported in March 2021, which was 15.8% down from the figure reported in February 2021.

"The State Customs Service of Ukraine has calculated the average customs value of imported natural gas formed at customs clearance from March 1 to 31, 2021. It stood at UAH 5,820.60, or US$209.65 per 1,000 cubic meters," the Ministry for Development of Economy, Trade and Agriculture said on its website on April 9 with reference to the customs service.

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Background

• On January 1, 2021, a new price of natural gas was introduced in Ukraine; it was offered by gas suppliers as part of launching a competitive gas market.
• Gas suppliers' prices for households in Ukraine in January were set between UAH 6.99 (US$0.25) and UAH 10.8 (almost US$0.39) per cubic meter, while the minimum rate was 11% up and the maximum one was 20.5% up on the December quotation.
• On January 1, 2021, new tariffs for natural gas transportation were also introduced in Ukraine.
• The National Energy and Utilities Regulatory Commission of Ukraine (NEURC) increased tariffs for 43 gas distribution companies' services by an average of 1.6 times as of January 2021.
• Since the beginning of January 2021, rallies against the increase in gas and utilities rates have taken place in a number of the regions across Ukraine.
• Responding to the mass protests, President Volodymyr Zelensky instructed the government to urgently resolve the issue of gas tariffs for households.
• On January 13, 2021, the Cabinet said it would propose setting a fixed price of natural gas for households at UAH 6.99 per cubic meter.
• On January 18, 2021, the government fixed a price of natural gas at UAH 6.99 per cubic meter for households in Ukraine as of February until the end of the heating season.
• The average price of imported natural gas in Ukraine in January 2021 was US$250.1 per 1,000 cubic meters, which was 23.5% up from December 2020.
• The average price in February 2021 decreased by 0.3% from the January price, to US$249.27 per 1,000 cubic meters.