The Government's decision to set the maximum price for gas for household consumers at UAH 6.99 per cubic meter will reduce its cost to the population by an average of 30%. Meanwhile, for some Ukrainians this reduction will be almost 40%. This was stated by Prime Minister Denys Shmyhal during an extraordinary meeting of the Government on January 18.

On commission of the President of Ukraine, on January 18, the Cabinet of Ministers adopted a decision setting the marginal gas price at UAH 6.99 per cubic meter. According to the Prime Minister, this price will be valid until the end of the heating season or until the end of quarantine.

Denys Shmyhal stressed that the price set by the Government is by UAH 1.5 lower per cubic meter than in 2018 and 2019.

"In the winter months of those years, payments averaged UAH 2.5-3 thousand. Or 75% of the then minimum wage. The price set by us will be at the level of UAH 6.99 per cubic meter. This means that the average payment for the same consumption volumes will be by about 500 UAH less. And it will make up about 40% of today's minimum wage," said the Prime Minister.

The Head of Government also stressed that the decision to set a maximum gas price does not mean that the Government refuses to develop the gas market in Ukraine. According to him, without intervening in the situation, in February, a cubic meter of gas could rise to UAH 12.

"Given the imperfect competition, market monopolization, such a decision is necessary to balance and direct the market on the path of development, instead of conservation of monopolies," said Denys Shmyhal.

According to the Prime Minister, the gas market is an irreversible step, as it puts an end to monopoly and allows people to choose their gas provider to get the best price and services.

In addition, Denys Shmyhal said that in the future the Government will oblige all gas supply companies to present their annual products to the public so that people can sign an annual contract and understand the prices in bills in advance.

"This will allow everyone to save in the winter months, and plan their personal budget, and simultaneously get the best price for gas. This is a European approach that works in absolutely all civilized and developed countries. And we, despite the pressure of some speculators and politicians, will advance in this direction as well," the Prime Minister stressed.

The Prime Minister also stressed that those citizens who currently have annual contracts below UAH 6.99 per cubic meter will further provide services at the prices specified in the contracts.

Moreover, people from socially vulnerable groups, according to Denys Shmyhal, will continue to receive subsidies in full.