Naftogaz Asks to Raise Household Gas Prices 1.5 Times

Naftogaz of Ukraine yesterday requested a 1.5 times increase in the price of gas for Ukrainian households, by linking it to the price on the Russian market, according to daily Kommersant. Naftogaz says that government intervention is required to ease the two main factors that have derailed profitability: high taxes and price caps. The household price for gas in Ukraine is currently 1.5 times lower than in Russia and the lowest in Europe. According to Tymoshenko Bloc deputy candidate Mykhail Volinets, no matter which political party forms the next government, a rise in the price of gas is inevitable. If the government agrees, the effect will be most material for Naftogaz of Ukraine, other beneficiaries include smaller state-controlled gas producers (e.g. Ukrnafta), and those operating under joint activity agreements with state-owned companies.