The cost of gas transportation in Ukraine will increase by 305%
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Economics
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The cost of gas transportation in Ukraine will increase by 305%

The cost of gas transportation in Ukraine will increase by 305%
Source:  NKREK

From January 1, 2025, the tariff for gas transportation for domestic consumers will increase fourfold — from 124.16 to 501.97 UAH per 1,000 cubic meters.

Points of attention

  • This will become an additional burden for Ukrainian industrial enterprises.
  • The decision is directly related to the cessation of Russian gas transit from January 1, 2025, which will be a powerful blow to the military machine of the aggressor country, the Russian Federation.

Gas pumping in Ukraine will become significantly more expensive

This decision was made by the National Energy Regulatory Commission during a meeting on December 30.

What is important to understand is that it is directly related to the cessation of Russian gas transit from January 1, 2025.

Dmytro Lippa, General Director of the GTS Operator of Ukraine, draws attention to the fact that this year 85% of revenue is from the transportation of gas originating from the Russian Federation.

That is, 15% is what we have left from domestic customers. The tariff increase is not enough for full compensation, but we agree, we understand that the Ukrainian economy needs balanced decisions.

Dmytro Lippa

Dmytro Lippa

General Director of the GTS Operator of Ukraine

According to Dmytro Lippa, the GTS Operator has done everything possible to reduce costs: compressor stations are being closed and preserved, and the number of personnel and expenses are being optimized.

Details of the NEURC decision

According to the latest data, the cost of pumping natural gas will increase from 124.16 to 501.97 UAH per 1,000 cubic meters, or almost 305%.

Representatives of Ukrainian business who participated in this meeting drew attention to the fact that this will become an additional burden for industrial enterprises.

In particular, the statement was made by the head of the Federation of Metallurgists, Serhiy Bilenkyi.

For our industry, this is an increase in annual costs of UAH 300 million. In the current conditions, against the background of increasing electricity tariffs, we are simply unable to withstand such a significant additional load, he said.

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