Government sets a borderline price for gas, UAH 6.99 per cubic meter, but Shmyhal assures gas market stays

On behalf of Volodymyr Zelenskyi, the government adopted a decision setting the maximum price for gas at UAH 6.99 per cubic meter.

Prime Minister Denys Shmyhal stated this at a government meeting.

"Such a price will be valid until the end of the heating season or until the end of quarantine. Gas suppliers cannot raise the price above UAH 6.99 per cubic meter. This decision will reduce the price of gas for Ukrainians by an average of 30%.

The price set by us (UAH 6.99/cubic meter) means that for the same consumption level, the average payment will be approximately UAH 500 smaller. And it will be about 40% of the minimum wage," the prime minister said.

Shmyhal added that the decision to set a maximum gas price didn't mean that the government refused to develop the gas market in Ukraine.

"Today, without us intervening in the situation, a cubic meter of gas could rise in price to UAH 12 in February.

…The gas market is an opportunity to choose your gas supplier and get the best price, services, and up-keep. The gas market also puts an end to stealing natural gas and robbing state-owned companies through various schemes.

In the future, we will make sure that all gas supply companies present their annual products to Ukrainians. Then people will sign an annual contract and understand in advance how much they will pay in winter or summer. This is a European approach that works in all civilized and developed countries," Prime Minister stressed.

Shmyhal said that they expected the National Commission for State Regulation of Energy and Public Utilities to set a limit on the gas distribution tariff soon. It should not exceed 1.79 UAH/cubic meter.

"For two weeks we'd discussed the decision with the people's deputies, the profile committee of the Verkhovna Rada, with the regulator. It will reduce the tariff for distribution to small regional gas companies by 50 percent or more."