Goverment: Gas prices for the population will fall again
The final price of natural gas for households and heating companies in January will be 6-7 UAH per cubic meter, said Minister of Energy and Environmental Protection Alexei Orzhel at a January 29 briefing.
According to the new calculation formula, the price for consumers will be UAH 4.65 per cubic meter (excluding VAT, gas sales margins and transportation costs).
“The final price for the consumer, if we add transportation, distribution and all other mark-ups and extra charges depending on regional gas companies, will be from 6 to 7 thousand UAH [per 1 thousand cubic meters],” said Orzhel.
According to him, the price at the TTF Dutch gas hub was chosen to calculate the cost, since it is more liquid. For the calculation, the first 22 days of the month are taken, since the closing of exchange prices occurs on the 22-23rd day, after which prices move to the next month. According to him, in February you can monitor the hub indices and most calculate the price using the formula.
“We expect the positive trend in the market to continue. This new formula will provide an opportunity to once again review in February the price of gas in the direction of decline. The market should be not only for the consumer, but also for the trader: someone will win, someone will lose. It is extremely important for us, before the market opens completely, from May 1, 2020, to inform Ukrainian consumers that the market is working not only upwards, but also downwards, ”the minister added.
Source: NV