Expert: Gas prices for households may rise by 40% by October

An expert in the field of energy Valentyn Zemlyanskiy said that the gas prices for the population could increase by 40% – to the level of UAH 9,700 per thousand cubic meters by October 2019, due to the shortcomings of the current regulatory framework and the imperfection of tariff formation mechanisms that affect the price.

“We expect the gas price on October 1 of this year will be set at UAH 9,700 per thousand cubic meters. That is, until January 2020 we will reach this tariff, and this is 40-50% of the current price. On average, the payment, which now amounts to UAH 4,000, will be UAH 6,000-6,300 in November. Preserving the current policy leads to continuing tariff increases,” said the expert.

According to Zemlyanskiy, it is remains unknown what will happen after 2020, and how the price will be formed, UNIAN reports.

“We find ourselves in a situation when gas prices will be revised monthly, respectively, will increase. Even when the gas season is low, the price goes up; not mentioning the high season. We will have this situation by the end of the year,” he explained.

According to Zemlyanskiy, if the government does not take any decisions and the regulatory framework will remain unchanged, then the gas price will go free from January 1, 2020, without any restrictions.

“I recall that now the limit is UAH 9,700 per thousand cubic meters; then will be what the government call ‘the free market’: the gas price will be set by the Naftogaz of Ukraine,” said the expert.

It is noted that in the last government decree, the gas prices for the population was tied to the price of blue fuel for industry.

“Only the upper bar has been installed, above which it cannot be raised – it is UAH 9,700 per thousand cubic meters, respectively, the Naftogaz of Ukraine is by his own. It sets the price for the industry and the price for the population within the limits that the Cabinet of Ministers has granted him, from UAH 9,700 and below,” said Zemlyansky.

As The Journalist reported, Kobolyev through the court got the abolition of the right of the Cabinet of Ministers to fire him.