Naftogaz cuts gas price for population by 6% in June

"In June 2020, the wholesale price of natural gas for the needs of population, heat producers and other protected consumers receiving gas from Naftogaz of Ukraine under the terms of public service obligations (PSO) fell to UAH 2.14 per cubic meter (without VAT, gas sellers’ margins and costs for gas transportation by main and distribution pipelines). This is 6% less than in May 2020,” reads the statement.

In total, the gas price for the population has fallen by 54% since the year-start, and by 61% compared with the relevant period last year.

At the same time, Naftogaz analysts note that the rate of price decline has slowed, and prices at major European hubs are rising from the second week of June, both for the current month and for future periods.

According to Naftogaz, among the main factors are the cancellation of a significant part of liquefied gas supplies to Europe in June and July, the growth of industrial production after the lifting of lockdown restrictions and the transition of European thermal power plants to gas instead of coal.

At the same time, domestic prices in Ukraine remain below import parity index.

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