Experts predict gas price hike in Ukraine in winter

Experts say the tariff of natural gas in Ukraine in the winter months may increase from UAH 5.3 (US$0.19) to UAH 7 (US$0.25) per cubic meter over the peak period of gas consumption.

Read alsoUkrainian gas stocks grow by 1.4% to 28.1 bcm over weekUkrainian analyst Yehor Komov says the price of gas on the market may reach UAH 7 per cubic meter as early as in December, the Ukrainian online news outlet Obozrevatel reported on October 9.

"Gas is a commodity whose price is regulated by the same market laws. With the start of the heating season, demand for gas grows, as there are more buyers while the volume [of gas] remains the same, so the price will be higher. Now there are market mechanisms, for example, it's possible to switch to annual tariffs and pay the same [fixed] price. Then it will not be growing," he said.

Analyst for the Ukrainian Energy Exchange Oksana Zaporizka says the rise in gas prices is seasonal as it stems directly from its demand in the winter months.

"The price will go up because of the season changes. As a rule, this happens as winter approaches. It's difficult to say within which band it will be, but its level is expected to be lower against last winter. High reserves of natural gas are now accumulated in the [underground] storage facilities, while the decline in demand was triggered by the coronavirus pandemic," she said.

Gas price in Ukraine

• In September 2020, gas prices for Ukrainian households were within the range of UAH 4.4 (US$0.16) to UAH 7 (US$0.25) per cubic meter.
• On August 1, the natural gas market opened for the country's households, who received the opportunity to independently select their gas supplier.
• National Joint-Stock Company Naftogaz of Ukraine's public service obligations (PSOs) to supply gas to households expired, but municipal heating companies will continue to receive gas at prices regulated by Naftogaz.