Ukraine’s Gas Prices Experience Continued Decline, National Bank Predicts Further Reductions
The Ukrainian Ministry of Economy has unveiled the latest natural gas pricing, revealing a cost of 11,621.27 UAH per 1,000 cubic meters, excluding VAT. This marks a significant decrease of 4.6% compared to the previous month and continues a downward trajectory that has persisted for five consecutive months. Currently, the price is 1.6 times lower than it was a year ago. The average gas price is calculated based on a formula established by Ukraine’s Tax Code for the collection of rent for the use of mineral resources.
In a related forecast, the National Bank of Ukraine predicts further decline in natural gas prices within the European market. For the upcoming years, a reduction of 0.9% is expected in 2024, bringing the price down to $461.6 per 1,000 cubic meters. A more substantial drop of 10.8% is anticipated for 2025, with prices declining to $411.8, and by 2026, a further 12.2% decrease is projected, with prices potentially settling at $361.5.
Moreover, the fixed price for gas for the Ukrainian population remains at 7,960 UAH per 1,000 cubic meters (including VAT). This stability is a result of a moratorium on tariff increases that has been imposed during the ongoing conflict.
These developments indicate a significant shift in Ukraine’s energy landscape, reflecting broader trends in the European market while also ensuring that domestic consumers remain shielded from immediate price hikes amidst challenging conditions.
