Ukrainian state gas company Naftogaz and the country’s government have announced an agreement to cut gas prices for households and heat producers, effective from May 1.
“On the instructions of the cabinet of ministers, Naftogaz and government representatives have developed a new mechanism to calculate regulated gas prices. This solution will help not only avoid an increase in gas prices for households and heat producers, but it will also allow for a reduction in gas price to 8,247 hryvnia (310 US dollars) per 1,000 cubic meters (retail price),” Naftogaz said in a statement.
According to the new approach, if the market price of gas for industrial consumption is lower than the price established by government resolution in October 2018, the price for households will fall in line with the decrease for industrial consumers. On condition the market price exceeds the level determined by the government, prices for the population will remain at a level according to that.
The government’s decision came as Naftogaz announced that Ukrainian gas reserves had grown to 9.4 billion cubic metres, compared to last year’s 8.4 billion cubic metres.