Ukraine's govt proposes ways to reduce gas tariffs for population

Source : 112 Ukraine

The government announces two approaches that will significantly reduce tariffs
22:43, 11 January 2021

Open source

The Cabinet of Ministers of Ukraine has developed ways to resolve the issue of increased gas tariffs for the population. The government has two approaches that will significantly reduce tariffs, as Prime Minister of Ukraine Denys Shmygal said.

"The first approach is the formation of gas tariffs according to the formula "price at European hubs" minus "cost of gas transportation to Ukraine." It is proposed by the Ministry of Energy. In addition, it is proposed to temporarily limit the margin for gas suppliers. The expected result is a significant reduction in tariffs and leveling of attempts speculators to preserve super-profits in the conditions of the formation of new European rules, " Shmygal said.

Related: No cheap gas in 2021: Why Ukraine cannot increase blue fuel production?

"The second approach proposed by the state-owned company Naftogaz is to increase competition in the market by obligatory publication by all gas supply companies of their annual gas tariff, as Naftogaz is already doing. In addition, it is proposed that gas supply companies begin to actively compete for the consumer base, which will lead to a decrease in tariffs within the framework of open tenders. The expected result is increased competition and, as a result, a significant decrease in payments for Ukrainians," the prime minister added.

Meanwhile, residents of Ivano-Frankivsk, Poltava, Kherson, Vinnytsia and Lviv protest against sky-high gas tariffs in Ukraine.

Related: Explosion on main gas pipeline in Poltava region doesn't affect gas transit to Europe, - Naftogaz

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