Naftogaz to cut gas price for households by 8 percent in July

NJSC Naftogaz Ukrainy in July will cut the price of natural gas for the needs of households by 8 percent compared with the price in June, to Hr 5,803 per 1,000 cubic meters (VAT and transportation and distribution costs not included), Chairman of Naftogaz Executive Board Andriy Kobolev has written on his Facebook page.

“Gas on the international market is becoming cheaper again. Thanks to this, Naftogaz reduces gas prices for industrial consumers by almost 8% in June. According to the government’s decision, the price of Naftogaz for commercial consumers forms the price of gas for households that is valid next month,” he wrote.

As reported, Cabinet of Ministers resolution No. 867 dated October 19, 2018, extended the period of validity of public service obligations (PSO) for Naftogaz to sell natural gas for the needs of the households, producers of heat energy and religious organizations until May 1, 2020.

The situation on the European market since spring 2019 has led to a decrease in the market price of gas below the government-set regulatory level for households.

The government made amendments, according to which, under PSO, the prices of gas for households and heat suppliers is calculated as the average price of gas supplied by Naftogaz to industrial consumers that was in effect in the month preceding the month of delivery.

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