The government preparing to gas price hike, and the inevitable negative economic consequences. The Ministry of economic development and trade of Ukraine has approved and published the Forecast of social and economic development of the country in the years 2019-2021.
According to the document, the gas price for the population will continue to grow. By the end of this year it can increase by 18% in 2019 and by another 5-8%, and in 2020-m — on 14%. However, in 2021, the economy Ministry predicts a stable price for natural gas. Thus in the document it is noted that the calculations are so far only hypothetical and may vary depending on various changing factors.
Your forecast was issued and main Bank of the country.
“We expect that rising prices for gas and communal services this year will be at 25%. The impact of this increase on inflation will be around 0.9 per cent. Next year the national Bank expects the increase in gas prices and housing and communal services by 15%. If you look at the Ukrainian and world prices for gas, then the difference is somewhere in 40%. We believe that this differential will be eliminated in about 2 years“, — said the Deputy Chairman of the National Bank of Ukraine Dmitry Sologub.
In fairness it should be noted that the Prime Minister of Ukraine Volodymyr Groysman at a government meeting on July 11 announced a reduction of gas rates due to gas produced domestically. He also noted that the price of gas were to rise in the summer of 2017, a requirement of the International monetary Fund. However, the price has not yet risen, and the negotiations with the IMF regarding the formula for calculating gas prices is still underway.