Sharp Increase in Gas Prices for Industry in Ukraine: New Record in 2.5 Years
The Ukrainian market is experiencing a significant rise in gas prices for industrial consumers and businesses. On Wednesday, June 18, the average cost of a thousand cubic meters of gas exceeded 31,550 hryvnias, marking the highest level in the last two and a half years.
This is reported by AgroReview
Price Dynamics and Reasons for the Increase
According to market information, throughout the day gas was traded within the range of 31,200 – 31,900 hryvnias per thousand cubic meters, with some sellers offering the resource for even 32,000 hryvnias and above. Analysts are noting the rapid increase: since the beginning of June, the price has risen by 26%, and since early May, it has increased by 1.6 times.
“In recent days, the pace of gas price increases has accelerated. If at the beginning of the week gas could be purchased for less than 30,000 hryvnias per 1,000 cubic meters, by Wednesday the price of the resource exceeded 31,500 hryvnias per 1,000 cubic meters,” the publication states.
Impact of External Factors and Demand
The main reason for the rise in gas prices in Ukraine is attributed by experts to the increase in its cost on European markets, driven by geopolitical risks. In particular, the war between Israel and Iran may affect global supplies and demand for liquefied natural gas. Additionally, there is high demand in the domestic market, especially among industrial consumers and state companies. It is known that enterprises are actively purchasing gas not only for the current month but also forming strategic reserves for the autumn-winter period. Active buyers include LLC “Operator GTS of Ukraine” and LLC “Gas Supply Company Naftogaz Trading”.
At the same time, these changes only affect industrial consumers and businesses. For the population, heat producers, and electricity producers, the gas price remains fixed according to government regulations, and supply is provided by NJSC “Naftogaz of Ukraine” at regulated tariffs.