As provided by the operating IMF memorandum, Ukraine is to increase consumer gas price up to 12,300 hryvnia per 1,000 cubic meter during the next heating season. This will result in a collapse of the utilities sector. In order to avoid it, the price issue must be resolved during summer, OPPOSITION PLATFORM — FOR LIFE MP Serhiy Lovochkin stated.

“There’s a Cabinet of Ministers’ resolution dated Nov. 15, 2018, prescribing that the gas price is increased up to 12,300 hryvnia per 1,000 cubic meters after Jan. 1, 2020. The resolution has not yet been denounced. Since then, the global gas price has decreased, but the parity price for the population will still mean an increase to 10,000 hryvnia and subsequent heating fee surge. Current fees are unaffordable for so many Ukrainians, and this is evidenced by cosmic indebtedness for utility services. The new price increase will result in a total collapse of the sector,” Lovochkin said.

The MP is certain that the November resolution of the Cabinet should be denounced, and the formula for calculating consumer gas price should be revised.

“We must abandon the very principle of the parity price with the import gas price and get back to the system that existed before 2015, when nationally produced gas under $100 per 1,000 cubic meters would be used for the population’s needs. If this approach is adopted, the fees can be lowered by twofold,” Lovochkin explained.

“However, if the new government stops making it a political issue and signs a direct contract with Russia’s Gazprom, imported gas will cost less than global gas for Ukraine. If this happens, we’ll be able to secure low gas price both for the population and industrial manufacturing sector. The fees will be lower, and Ukrainians’ salaries will be higher. The threat of the utilities sector collapse will leave for good,” Lovochkin summed up.