What will happen to the price of gas in Ukraine in the fall: when and how much can rise in price of blue fuel for the population

“We do not expect an increase in gas prices this autumn,” – said the other day, Prime Minister Vladimir Groisman. At the same time, the Memorandum with the IMF, Ukraine has pledged to keep the cost of the blue fuel at the level of import prices. To this end, the government has already drafted a resolution, which provides for an automatic adjustment of the rate every six months. The solution currently put on “pause” in the near future, as promised Prime Minister gas for Ukrainians will not rise. The website “Today” figured out how and why may change the cost of gas and what to expect this fall.

Who and what determines the price of gas

Since the beginning of last year, the Cabinet took Natskomissii the right to determine the tariff for natural gas. Prices the government sets its decision. Last year, the Cabinet established: until 31 March 2017 “Naftogaz of Ukraine” purchases of natural gas at a price 4849 hryvnia per thousand cubic meters. Taking into account the costs of shipping, value added tax and surcharges the final price to the consumer – 6,8 hryvnia per cubic meter. This year, the government extended the regulation until the first of April 2018, i.e. until the end of the coming heating season. Accordingly, the gas can rise only next year.

“A few days ago we took the decision at a meeting of the government — the increase in natural gas prices for Ukrainian citizens, we do not support. Prices will remain in the natural oscillations in accordance with the inflation processes including, therefore, any sudden changes in pricing will not happen,” — said Vladimir Groisman.

“We made the decision at a meeting of the government — the increase in natural gas prices for Ukrainian citizens, we do not support. Prices will remain in the natural oscillations in accordance with the inflation processes including, therefore, any sudden changes in pricing will not happen,” — said Vladimir Groisman.

The current gas tariff is calculated as the price of natural gas at the German hub × the exchange rate of hryvnia according to the NBU rate + transportation costs + tax + markup “Naftogaz”. This formula, say in the government, keep the rate at the level of import parity. At the same time, Ukrainian and cheap, and expensive imported gas is sold to the Ukrainians for one price.

Photo: archive

In the Memorandum with the IMF, which was signed by the President, Prime Minister, Minister of Finance and the head of the NBU, Ukraine has pledged to “conduct a temporary mechanism to automatically adjust the retail tariffs for gas and heating on a semi-annual basis.” Such a mechanism has been developed. Every six months (the first of October and the first of April) officials will rely on the above formula the rate. And if you find that it differs by at least 10% of the current price will change.

As experts believe, given the rise in price of imported gas and the devaluation of the hryvnia, we are talking about the growth rate. The ex-the head of Department on public relations of “Naftogaz” Valentin Zemlyansky estimated gas, according to the formula of the Cabinet, will cost 9600 hryvnia per thousand cubic meters (currently 6800 UAH). At the same time, Yuri Korolchuk sure that it is economically reasonable price of gas will rise by 25-60% (8.5-11 thousand UAH).

Rate 6.8 hryvnia per cubic meter counted when a thousand cubic meters of imported gas was worth $ 185. In the budget of Ukraine this year provided that the imported gas will cost 246 dollars. In addition, devalued the hryvnia.

What will change in the fall

According to the Memorandum, in the autumn, before the heating season, Ukraine has to split the gas fare into two components: the price of natural gas as a commodity and the cost of distribution. In fact, it means the introduction of fees for natural gas. “Until the end of September 2017 we will make further changes to resolutions of the Cabinet of Ministers No. 758, which separate tariffs for the supply and distribution of gas and the price of gas as a commodity,” reads the Memorandum.

The national Commission planned to pay a subscription fee until the end of may this year. The corresponding decision was already made, but after criticism from the Prime Minister the decision was delayed. According to the website “Today” if the resolution came into force, Ukrainians who use gas only for heating food (and the majority) would have to pay more. But those who use gas for heating, the subscription fee would save. More information can be found here.

The Cabinet also plans to cancel the installment of heating. We will remind, Ukrainians without subsidies in the past heating season could make installments and pay for heating is two times less, but the whole year. This opportunity was used by thousands of families who do not qualify for the subsidy.

Innovations waiting and subsidianes. In may , the government cut the social norms of consumption that is charged to the subsidy. Previously, heating gas gave 5 cubic meters per square meter, this fall will be just 5 cubes. In addition, reduced and standard Central heating – 0,0548 to 0,0431 Gcal per square meter. The family, who spent exactly according to the norm, will have to either save, or part of the amount to pay without subsidies. For example, in February of this year, the subsidy covers of 3.28 Gcal of heat on heating of apartments with an area of 60 squares, and in October of this year in the same area, the subsidy compensates for total of 2.58 Gcal.

How much you should pay for communal subsidy
How many people in your family:
What is the total income of your family (UAH):

How do you heat the house:
There is Central heating
Heated with gas

What area of your home (m2):

How many can pay for communal*:
* If the specified amount is sufficient for the payment of utilities with no subsidy, “discount” is not entitled to

What is covered by the subsidy:

The calculator shows a sample calculation. The final decision on the appointment of subsidies are received by the local authority of social protection, which also can calculate the exact amount of the grant.


How to pay less

Experts explain: any family can pay for heating less, if you implement energy efficiency measures. First you need to install a heat meter, then the heating station with balancing valves and only after that to warm the house. Below the insulation is not harmed (for example, shifted the dew point and not there was mold in the apartments), all activities should be determined by a qualified energy auditor. Read more about how is an energy audit, can be found here.

Photo: ITAR-TASS/ Mitya Aleshkovsky

The majority of the Ukrainian mgnetic from 30 to 70% of the heat is spending “wasted”. Gcal “go” through non-insulated walls, Windows, basements and roofs. Teplomerezhi high-rise building of 500 apartments in an average can cost up to five million. To pay for work and materials, each apartment would have to “allocate” 10 thousand hryvnias. The second option is to attract funds from outside. So, soon Ukraine will launch the energy efficiency Fund that will provide loans and grants for teploozerskiy. To give money for several years for the savings.

In addition, Ukraine already operates the state program “Warm credit.” In the state Bank can receive a loan for teploozerskiy. Part of the funds – from 30 to 70% – was allocated from the national budget and the rest will have to repay the residents. Similar programs operate in some Ukrainian cities such as Kiev and Mirgorod.