MainNews -

Cabinet not to raise gas prices for households despite IMF demands

Gas tariffs were to soar 17.6 per cent from 1 October.

Cabinet not to raise gas prices for households despite IMF demands
Photo: Photo: Max Levin

The Ukrainian government has postponed indefinitely the publication of the gas price at the level of import parity for the period from 1 October 2017 to 31 March 2018, Ukrainian News reported, citing a cabinet resolution dated 26 September.

It is decided to postpone the publication of the gas price until its mechanism is agreed with the International Monetary Fund and the European Energy Community.

This means Ukraine will retain the gas tariffs set at the level of import parity as of 1 April at 4,942 hryvnyas per 1,000 cu.m.

According to the import party methodology established by the cabinet on 22 March, the price of gas for households and heat-generating companies should have increased by 17.6 per cent. This mechanism was agreed with the IMF early this year. However, Prime Minister Volodymyr Groysman has been adamantly opposed to raising the gas tariffs.

In September, IMF First Deputy Managing Director David Lipton said that the IMF asked Ukraine to adhere to its commitments regarding the price of gas for households. He stressed that it was crucial to depoliticize this process through the use of a pre-set formula.

Read LB.ua news on social networks Facebook, Twitter and Telegram