Economy

Gas tariffs in Ukraine: will the price really rise to UAH 10?

Recently, information about a possible increase in gas tariffs for households has been appearing more and more often. According to the head of the Union of Consumers of Public Utilities, Oleh Popenko, the price of gas may rise to UAH 9.5-10 per cubic meter in the summer of 2024, Komersant ukrainskyi reports.

The increase in gas prices is explained by the need to purchase additional volumes of gas at high market prices.

The current gas tariff for households is UAH 7.96 per cubic meter, and it has remained unchanged since the beginning of the full-scale invasion. However, the real market value of gas is much higher, and the state is forced to compensate for the difference between the established tariff and actual prices.

Why might tariffs be raised?

Ukraine continues to work towards energy independence, but a significant portion of gas is purchased on foreign markets. According to experts:

• Ukraine needs an additional 3-4 billion cubic meters of gas to cover the needs of households and businesses.
• Imported gas is purchased at world market prices, which are significantly higher than current tariffs.
• The tariff increase may be implemented in the summer, when gas consumption is minimal, to mitigate the financial burden on citizens.

Can tariffs be raised now?

Ukraine is currently under a moratorium on raising gas, heat and electricity tariffs, which was introduced at the beginning of the full-scale war as part of social protection measures.

The moratorium remains in effect until at least 2025. This means that tariffs cannot be officially raised, but discussions on this topic are already underway.

What will happen after the moratorium is lifted?

Experts predict that after 2025, the price of gas may increase even more – up to UAH 10-12 per cubic meter, as this will correspond to the real market value of the resource.

Some gas suppliers are already offering alternative tariffs for consumers, which allows them to partially prepare for a possible price increase.

Will there be support for the population?

The government is considering options to support citizens, including

• subsidies and social benefits for those who will not be able to pay the new tariffs;
• launching energy efficiency programs to reduce gas consumption in households;
• increasing domestic gas production to help reduce dependence on imports.

What’s next?

The tariff increase remains an open question. It depends on:

• political decisions of the government and energy companies;
• the level of international assistance and possible subsidies for gas purchases;
• the overall economic situation in the country and the financial capabilities of the population.

Currently, there is no final decision on tariff increases, but the government and energy companies are already preparing for possible changes. Citizens should be prepared for the fact that tariffs may increase after the moratorium ends, and therefore, it is important to follow the news and possible support mechanisms.