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Naftogaz demands Ukraine's Government to cancel special duties regime to lower gas price

Earlier, the company reported that special duties make gas prices decrease impossible
13:00, 17 April 2019

Open source

Naftogaz-Ukraine demands the Cabinet of Ministers to cancel the order No. 867 as of October 19, 2019 on the regulation of gas prices, as the press office of the company reported.

“On April 9, 2019 Naftogaz-Ukraine appealed to the Cabinet of Ministers of Ukraine asking to cancel the order on the imposition of special duties which requires gas prices increase for the population since May 1, 2019 or amend it,” the message reads.

The company’s representatives stated that now Naftogaz has to observe these special duties according to which since May, 1 gas prices will increase by 15% to the level of $276 per one cubic meter (without VAT and expenses for transportation and distribution).

Related: Russia's stance on gas transit across Ukraine won't change, - Naftogaz CEO

It was emphasized that the market gas price for May published as of April 16 by the Ukrainian power exchange, makes $261 per one thousand cubic meter with VAT, which is by 27% lower than the price calculated by Ukraine’s Government.

“The order No. 293 which the Government adopted on April 3, 2019 does not remove Naftogaz’s obligation to perform the current order No.867 despite the directly applicable norms of the articles No. 9 and 18 of the Constitution of Ukraine. It also does not impose new special duties on Naftogaz and does not cancel the current order on the special duties,” Naftogaz reported.

Related: Naftogaz refreshes contract with Norwegian company for settlement of argument with Gazprom

It was informed that if the orders No. 967 are violated, the company and its officials will be punished for the violation of the gas supply and for crimes.

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