Ukraine Gas and Electricity Tariffs Remain Unchanged from May 1

by Chief Editor

Utility tariffs for electricity and gas in Ukraine will remain unchanged starting May 1. The cost of electricity is set at 4.32 UAH per kWh, while gas will continue to be priced at 7.96 UAH per cubic meter.

Electricity Pricing and Government Stance

The current electricity tariff was fixed by a decision of the Cabinet of Ministers, which officially expires on April 30. Despite this, Prime Minister Yulia Sviridenko has stated that the government is not currently considering a price increase for the population.

Sviridenko noted that raising costs during a period of constant power outages would be a “strange decision.” However, users with electric heating should be aware that their preferential electricity tariff will cease to be effective on May 1.

Did You Know? Before the full-scale war, “Naftogaz” supplied gas to approximately 10% of the population, with various suppliers and tariffs available. Today, “Naftogaz” supplies nearly all consumers, covering roughly 98% of the market.

The Status of Gas Tariffs

By law, gas prices and delivery tariffs cannot be revised during the period of martial law. A moratorium is currently in place, which extends through the duration of martial law plus an additional six months.

While the “Fixed” tariff plan from “Naftogaz,” which sets the price at 7.96 UAH per cubic meter, also ends on April 30, the government has indicated that the current rate will be maintained.

Expert Insight: The shift from a competitive gas market to a state-regulated monopoly reflects the emergency nature of the current conflict. While price freezes provide essential social stability during the war, the tension between these fixed rates and the need for critical infrastructure investment suggests a difficult economic transition ahead.

Future Outlook and Market Pressures

Both the government and “Naftogaz” acknowledge that maintaining current price levels may not be sustainable in peacetime. International partners have already suggested that the Ukrainian government should develop a plan to return to market-based pricing after the war.

The necessity for future adjustments is further compounded by the need for significant investments in domestic gas production. This is particularly urgent given the ongoing attacks on gas infrastructure. A price increase in the longer term appears likely.

Frequently Asked Questions

What will be the cost of electricity and gas from May 1?

Electricity will cost 4.32 UAH per kWh, and gas will cost 7.96 UAH per cubic meter.

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Until when is the gas tariff moratorium in effect?

The moratorium is in place for the duration of martial law plus six months following its conclusion.

Will there be any changes for users with electric heating?

Yes, the preferential electricity tariff for those with electric heating will finish on May 1.

How do you think the transition to market-based utility pricing should be handled after the war?

Advisability of increasing electricity tariffs. Ukraine Crisis Media Center, 1st of September 2015

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