Gas prices to grow until end of winter – Ukraine's official

Chairman of the Verkhovna Rada Committee on Energy, Housing and Utilities, Andriy Gerus says the "era" of cheap gas, which started this spring, is coming to an end, and gas prices will be growing until the end of winter.

Read alsoUkraine in Sep pays US$140.54 per 1,000 cubic meters of imported gas"We see that the price of gas is rising. Today it exceeds US$180. It's obvious this trend will continue until winter or until the end of winter. I think the era of cheap energy, which began this spring, is over. Diplomatically speaking, the prices will be at such an average level and quite stable," he said during the expert online discussion ENERGY INSIDE, as reported by an UNIAN correspondent on October 20.

Today, Ukraine sees the gas market liberalization, which provides opportunities for gas companies, but it's not always positive for consumers.

"We observe the gas market liberalization now. This is always good for companies, but not for consumers if there is insufficient competition," he said.

Gas market

• On August 1, the natural gas market opened for the country's households, who were allowed 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.
• The average price of imported natural gas paid by Ukraine in September 2020 was US$140.54 per 1,000 cubic meters, which was 32.5% up from August 2020.
• Ukraine's gas supply companies, within the competitive natural gas market, offered the households to buy gas in October at UAH 4.7 - UAH 6.8 (US$0.17 - US$0.24) per cubic meter, while the minimum gas price was 7.1% up and the maximum one was 2% down from September.
• In the spring of 2020, after the conclusion of the gas transit contract between Naftogaz and Russia's Gazprom, gas prices on the European market started to fall sharply. In the summer, the price reached US$80 per 1,000 cubic meters, whereas the average price of imported natural gas paid by Ukraine in January was US$175.26 per 1,000 cubic meters.
• In October 2020, analysts predicted an increase in gas prices for Ukrainian households.