Gas transmission in Ukraine to quadruple in cost starting Jan 1
Starting January 1, 2025, gas transportation tariffs for domestic consumers in Ukraine will increase fourfold. This decision was made by the National Commission for State Regulation of Energy and Public Utilities (NCREPU) during its meeting on December 30, citing the halt of Russian gas transit.
"In 2024, 85% of revenue came from transporting gas originating from the Russian Federation, while only 15% came from domestic users. The compensation won't fully cover the gap even with this tariff increase. Still, we understand that Ukraine's economy requires balanced decisions," said Dmytro Lyppa, CEO of Ukraine's Gas Transmission System Operator, during the meeting.
He assured that the operator has taken all possible measures to reduce expenses, including shutting down and preserving compressor stations, optimizing staff levels, and cutting costs.
According to the NCREPU decision, the natural gas transportation tariff will rise from UAH 124.16 ($2.94) to UAH 501.97 ($11.89) per 1,000 cubic meters, representing an almost 305% increase.
Business representatives who attended the meeting warned that this would impose an additional burden on industrial enterprises.
"For our industry, this means an additional annual cost of UAH 300 million ($7.1 million). Under current conditions, alongside rising electricity tariffs, we simply cannot bear such a significant additional load," warned Serhii Bilenkyi, head of the Federation of Metallurgists.
