The Ukrainian Oil & Gas Association Expects Lower Retail Prices for Liquefied Gas

Friday, 15 Sep 2017

The Ukrainian Oil & Gas Association Expects Lower Retail Prices for Liquefied Gas

The Ukrainian Oil & Gas Association Expects Lower Retail Prices for Liquefied Gas

In respect of the order of Prime Minister Volodymyr Groysman to monitor the situation with prices in the liquefied gas market, the Department of Oil and Gas Industry of the Ministry of Energy and Coal Industry of Ukraine informed the AMCU, the Ministry of Economic Development and Trade and the Ukrainian Oil & Gas Association of the predicted short-term decrease in the autogas retail prices.

According to the Ministry of Energy and Coal Industry of Ukraine, a nearly 25 percent decrease in LNG wholesale prices created all the necessary conditions for a proportional decrease in retail prices for this type of fuel. The results of the auctions held by UkrGasVydobuvannya and Ukrnafta in the first half of September were taken as indicative.

In the course of regular interaction with the executive authorities on regulatory issues, the Ukrainian Oil & Gas Association clarified its understanding of the situation in its response.

It was highlighted that, according to the Charter, the Association does not control the economic activities of the participating companies. The pricing procedure is specified in internal business policies and regulated by market mechanisms while depending on supply diversification and other objective factors.

At the same time, the Ukrainian Oil & Gas Association is confident that the market reaction to the fall in wholesale prices will be quite natural. This is already evidenced by the results of the monitoring. The average overnight decrease in the cost of LNG is UAH 0.30 per liter for all the UOGA participants. Different companies offering different prices operate in the retail fuel market, thus competition and freedom of consumer choice remain.

At the same time, the Association’s Legal Committee noted that the auctions of PJSC Ukrnafta, referred to by the Ministry, do not always reflect the real market situation, since they have regularly discredited themselves due to lack of transparency and artificial price dumping.

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