Ryabtsev: the rising cost of gas by 18% said back in the beginning of the year
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In the near future the Cabinet of Ministers of Ukraine is unlikely to adjust the price of gas, as this could negatively affect the rating of the government and its head Vladimir Groisman. This opinion in comments to the edition “GORDON” was expressed by the expert in the energy sector Gennady Ryabtsev.
“Usually every summer is published the forecast of economic and social development of Ukraine for the next three years. This time, the Cabinet approved the forecast for the 2019-2021 year. And there are a few scenarios with the corresponding assumptions. So it is assumed that the price of gas up to the end of the year will rise by 18%. According to another scenario, next year the cost may increase by 5-8%. That is, the forecast of economic development the growth in gas prices does not mean that it will. It is only the conclusions of the state experts. And the rising cost of gas by 18% said back in the beginning of the year. There are approved methods of pricing. And if it repelled, at the moment the cost of gas for the population should be higher than before if it was used at the beginning of last heating season, the price just would have been higher at 18-19%. Most likely, this number, and migrated to the forecast of the Ministry,” – said Ryabtsev.
According to him, the government of the draft laws propose a number of options to address the issue of gas prices.
“Whether the rise of gas prices depends on government decisions. There are several options. With a probability of 99% Groisman will not go on the alignment of gas prices for population and industry. After all, the last time the government took this decision, it cost him his collapse of confidence ratings to the level of statistical error. And given the political ambitions of the Prime Minister, it is unlikely he will allow such. And in what form the head of the Cabinet will stay, depends on whose position he will take. The government was certainly more than five sentences. For example, [the Minister of energy and coal industry Igor] Nasalik has offered to sell the public gas domestic production and price forming indicators of the subsidiary. Whatever it was, in my view, a sharp change in gas prices in the near future should not wait – it’s an unpopular decision can greatly affect the ranking of Groisman and companies”, – concluded Ryabtsev.
In the draft forecast of social and economic development in 2019-2021 years, the Ministry of economic development and trade of Ukraine forecasts the growth of prices for gas for the population by 18% this year.
In 2019 the government expects the increase in gas price by 5-8%, in 2020 – 14%.
From 1 April 2017 in Ukraine for the population and heating utilities operates the gas price set in the amount of 6957,9 UAH per 1 thousand m3 (VAT included).
The International monetary Fund claim that the Ukrainian authorities should adjust the price of natural gas on the domestic market to the level of import prices. The IMF believes that market prices for gas would stimulate the implementation of energy saving measures and promote the efficient allocation of resources.