Naftogaz raises gas price for households by over 45% in Sept

LLC Naftogaz of Ukraine GSC (Gas Supply Company) has set the price of gas for households in September at UAH 4.7 (US$0.17) per 1 cubic meter, which is 45.2% up from August 2020.

Read alsoNaftogaz to slightly raise gas prices for industrial consumers from Aug 1The price includes VAT, without taking into account the cost of distribution (supply) of gas under the Monthly tariff, the company's press service said on its website on August 26.

Tariffs

"Those who buy gas under the Monthly tariff will know the price of 1 cubic meter of gas before consuming it. In September, it will be UAH 4.7 per cubic meter with VAT (excluding the cost of distribution)," the report said.

The price will be rising

At the same time, the company plans to increase the price of gas for consumers, who use the Annual tariff, in the second half of September. In the first two weeks of the month, the summer price may be fixed at UAH 4.73 (US$0.17) per cubic meter with VAT (excluding the cost of distribution). However, the tariff will be UAH 5.24 (US$0.19) per cubic meter on September 16-30.

Naftogaz reiterated the tariff stipulates that the customer will pay for gas in equal parts within 12 months.

"When choosing this tariff, you do not need to make any prepayments, while it is possible to know exact amount of payment for gas per month," the press service added.

Contract is needed

According to the company, only GSC's customers, who have concluded a relevant contract, may use the Annual tariff.

Natural gas market

• On August 1, Ukraine launched the natural gas market for household consumers; prices of gas there are determined by the market. Gas prices were expected to go up after the launch of the gas market for households on August 1. Yet, experts forecast price hikes will not be swift as they could have been because Ukrainian underground gas storage facilities are full of gas.
• On August 7, 2020, Naftogaz announced tariff plans for sales of gas to households and businesses.
• On August 17, Naftogaz offered consumers to order gas at a fixed price for the year ahead.