The current increase is not the last - in 2019 the price of gas will be increased twice more
According to the new program with the IMF, Ukraine will have to increase the price of gas to the import level by the beginning of 2020 in three stages. The government already made the decision on the first increase from November 1 of this year to UAH 8550 per 1 thousand cubic meters last week. This represents 69% of the import price. Moreover, the methodology for determining the base import price has been changed. The next increase, up to 80%, is planned for May, and by January 1, 2020, Ukraine should have a single price for gas consumers. True, such an increase schedule can theoretically be changed during the negotiations to obtain the next credit tranche, a PolitNavigator correspondent reports.
The Kiev edition of Ukrainian News writes about this.
Moreover, Ukraine theoretically may not comply with the terms of the program at all if there is no need for IMF money - the Stand-by conditions allow this option, and this will not be considered a negative signal.
The second stage of price increases is planned immediately after the presidential elections - in May 2019. Then, according to the agency, the price of gas for the population using a reduction factor of 0,8 may increase by another 15% - to about 10000 per 1 thousand cubic meters. In fact, the price of gas will be 80% of the import price.
From January 1, 2020, according to agreements with the IMF, prices should be equal. True, such a schedule could theoretically be changed during the negotiations to obtain the next loan tranche.
If you find an error, please select a piece of text and press Ctrl + Enter.
Thank you!
Now the editors are aware.