Ukraine has increased gas prices

The price of gas for the population of Ukraine in July increased by 7% compared to the previous month, to 2.3 hryvnia ($0.83) per cubic meter, the press service of "Naftogaz of Ukraine".

In June, Naftogaz has reduced the price of gas for the population on 6%, to 2.14 hryvnia ($0.8) per cubic meter.

"In July 2020, the wholesale price of natural gas for households, heat producers, and other protected consumers, which the "Naftogaz of Ukraine" gas supplies in the framework of the special obligations, rose 16 cents to 2.30 UAH per cubic meter. This was 7% more compared to June 2020," - said in a statement on the website of the company.

"As was predicted by analysts of "Naftogaz", the prices on the main European gas hubs in the last decade of June and in early July began to rise, reaching a maximum from mid-may. The limiting factors for the Ukrainian prices are significant gas reserves in national repositories and record the gap between demand and supply. In particular, as of June in underground storage facilities of Ukraine has accumulated more than 21 billion cubic meters of gas, which is 42% higher than last year", - added in "Naftogaz".

The Ukrainian government since January has obliged "Naftogaz" to sell gas to the population and heat generating companies according to the price calculation formula which is tied to the cost of gas on the Dutch TTF hub.

The authorities of Ukraine in 2015 put on "Naftogaz" special obligations to sell gas to the population at regulated prices by the government. Later these commitments have been repeatedly extended, most recently until August 1, 2020.