Ukraine will order state energy firm Naftogaz to reduce household gas prices for the next two months, Prime Minister Volodymyr Groysman said on Wednesday, citing a fall in import prices.
The International Monetary Fund, Ukraine’s major lender, has repeatedly urged Kiev to raise gas prices to market rates, making this a condition of future financial aid for the country.
The government raised gas prices by nearly a quarter in October, allowing it to secure a new $3.9 billion stand-by aid agreement with the IMF.
“When import prices are decreasing it means that prices for domestic consumers must also decrease,” Groysman told a government meeting, adding that Naftogaz set prices above the market level, Reuters reports.
Groysman said the gas price for June must be set at 8,000 hryvnias per 1,000 cubic meters compared with the 8,800 hryvnias set by Naftogaz. In July, the price must decrease to 7,700 hryvnias, he added.
