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News / 16 January 2014 | 14:20
Cutting gas prices will save 11 billion UAH annually

Cutting gas prices will save 11 billion UAH annually

Reducing heating tariffs for budget organizations (schools, kindergartens, hospitals, etc.) by 20% will help save 2 billion USD annually, the Information-Analytical Bulletin of the Cabinet of Ministers of Ukraine informs.

According to Andryi Belousov, Deputy Minister of Regional Development, Construction and Housing and Communal Services of Ukraine, it has become possible due to agreements reached by Ukraine and the Russian Federation to reduce the price of natural gas from 408 to 268.5 USD per 1,000 cubic meters.

"Every year the budget organizations used to spend about 10 billion UAH to pay for heating. Now, reducing heating tariffs for these organizations will help save 2 billion USD," Belousov said.

Hovernment analysts dsu it will be possible to save on the difference between the actual gas price and the purchase price of the heating companies specifically for the population. Subsidizing of the difference costs the budget 19 billion UAH annually. Cutting gas prices will help reduce this amount to 9 billion UAH.

According to experts, the gas price included in the heating tariff for the population is 1309.2 UAH per 1,000 cubic meters, or 160 USD. It has remained unchanged for the past 3 years, whereas the actual gas price was  408 USD per 1,000 cubic meters.

The gas price included in the tariff for heating services for the population will remain at the same level, as the real gas price  and the price for population in terms of the new agreement with the RF remains unequal. The state continues to subsidize the difference in tariffs for thermal energy for the public in the amount of over 6 billion USD.

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