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The Cabinet proposed a plan to raise gas prices by 2-3% in the quarter

Кабмин предложил план повышения цен на газ на 2-3% в кварталThe government is trying to stretch the increase of tariffs for a year and a half.

The Cabinet of Ministers developed and submitted to the International monetary Fund, the new version changes the method of determining the price of gas for the population. It provides for tariff increase by 2-3% per quarter.

Thus, the government is trying to avoid a sharp step increase in tariffs and a sharp increase in expenditures for subsidies, which may be one-off significant increase in the price of gas and risk a surge of inflation.

By October of 2019 the price of gas will increase according to preliminary calculations, approximately 16%.

In parallel, the government prepared and submitted two IMF variation of the laying on of spacebattles (PSO) for the gas supply to the population, and CTV for 3 years to 1 April 2021. Under both options, the transition to the market price of gas can only be in the case of reducing the number of households receiving subsidies of up to 25% and cover all gas consumers in Ukraine with gas from its own production. And this is possible in 2021, when the government forecast in the extraction of 28 billion cubic meters of consumption will be 27 billion cubic meters.

The mechanism of PSO and the determination of the price of gas for the population in the government is considered unacceptable for further use because it is already in April will lead to higher gas prices by 30%, which will increase the number of subsidianes to 60% and the burden on the state budget for payment of subsidies, UAH 10 billion. – up to 80 billion UAH.

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