In March, the wholesale price of gas for the population will decrease by 14% compared to February and will amount to UAH 3.4 per cubic meter, excluding VAT, gas sales margins and transportation costs, Naftogaz Ukraine reported.
NAK Naftogaz Ukrainy as of March 2020 reduced the price of gas for the population to UAH 4.3, which is 14% less compared to February. This is stated in the message of the Ukrainian company on the page on Facebook.
“Experience shows that the solidarity of everyone and the responsibility of everyone helps to survive any crisis. We were able to use the new market mechanism and minimize the cost of gas for the population. The price of gas from Naftogaz will be 3.4 UAH / cubic meter excluding VAT, gas sales margins, transportation costs gas pipelines and distribution pipelines. In the payment for gas you will see a price of 4.3 UAH / cubic meter. This is a 14% decrease compared with February and the lowest price since 2016, “Naftogaz noted.
The company reminded that they did not supply gas directly to the population, except for the Kirovograd region, and expressed confidence that private suppliers would adjust their price in accordance with the market reduction, and it would not exceed 4.3 UAH / cubic meter.
“We have applied the lowest possible price permitted by law and plan to do so in the future. How has this become possible? As you know, the price of gas is calculated according to the formula defined by the Cabinet of Ministers. The main indicator is the results of exchange trading on the largest gas hub in Europe (TTF) However, in March, a new indicator appeared on the domestic market of Ukraine.The operator of the gas transmission system of Ukraine held a tender for a significant amount of gas and bidding showed that there was significant competition in Ukraine, which I leads to a decrease in wholesale gas prices Therefore, it is on this indicator, we were guided in the calculation of gas prices Due to significant competition in our market, gas in Ukraine has fallen in price faster than in the EU market.. “, – the” Naftogaz “.
On December 24, 2019, then Prime Minister of Ukraine Aleksey Goncharuk announced that in December Naftogaz reduced the price of gas for the needs of the population to 5132 UAH per 1 thousand m³ (including VAT), while in December 2018 gas cost 7482 UAH. Thus, the drop was 31%.
In February, the gas price for the population was UAH 3.95 per cubic meter (excluding VAT, gas sales margins and transportation costs), Naftogaz reported.