The state-run company Naftogaz of Ukraine, under the resolution of the Cabinet of Ministers of Ukraine dated April 3, 2019, No. 293, is obliged starting May to lower gas prices for the population. If the industry buys blue fuel at cheaper prices, the population should not pay more. That reads a letter from the Ministry of Energy and Coal Industry of Ukraine to NJSC Naftogaz of Ukraine.
According to the lawyers of the Ministry of Energy and Coal Industry, in order to sell gas to the population cheaper, the so-called SSOs (contracts for the supply of gas under special obligations) are not necessary to be canceled. After all, Article 11 of the Law of Ukraine "On the Natural Gas Market" does not limit the powers of the Government regarding the number of acts to be adopted in relation to the imposition of special obligations on market actors.
The Ministry of Energy and Coal Industry draws the attention of the state-owned company NJSC Naftogaz of Ukraine to the fact that, pursuant to Article 17 of the Constitution of Ukraine, all resolutions and orders issued by the Cabinet of Ministers of Ukraine are binding.
Under the Government's decision, if the gas market environment demonstrates a drop in gas prices for industry, NJSC Naftogaz of Ukraine is legally binding to sell gas to the public at a price, which is calculated as the arithmetic mean price of gas at which the state-run company offers gas to industrial consumers under prepayment terms.
If the price for the industry is increasing, NJSC Naftogaz of Ukraine must sell gas to the population at a price specified by resolution of the Cabinet of Ministers of Ukraine dated October 19, 2018, No. 867.