KIEV: Ukrainian President Petro Poroshenko describes the decision to introduce the single price as a serious anti-corruption measure. The Ukrainian government has decided to cancel reduced prices of natural gas for households and set a single market price from May 1, 2016, at the level of a purchasing price of imported gas, according to a Cabinet resolution dated April 27, 2016.
The single price is fixed at UAH 6,878 (USD 275) per 1,000 cubic meters. The new price consists of the price of imported gas with costs of delivery to the Western border, value added tax, costs of transportation inside Ukraine, gas distribution costs , and regional gas distribution companies’ commission.
Ukrainian Prime Minister Volodymyr Groysman said that the decision was uneasy and could trigger broad debates in the public, but it would let Ukraine get rid of all existing schemes that allowed earnings on a difference in gas tariffs.
At the same time, the Cabinet additionally allocated UAH 5.3 billion for subsidies this year to cover the subsidies recipients will have in connection with the introduction of the single price of gas.Thus, gas subsidies in 2016 will exceed UAH 40 billion. The Ukrainian government says that the amount will be enough to cover low-income households’ gas costs.
