Gas transportation tariffs in Ukraine will rise fourfold.

Gas transportation tariffs in Ukraine will increase fourfold starting from 2025

Starting from January 1, 2025, the tariffs for natural gas transportation for domestic consumers in Ukraine will rise fourfold. This decision was made by the National Commission for State Regulation of Energy and Public Utilities (NKREKP) during its meeting on December 30.

The reason for this is the suspension of Russian gas transit, which was previously the main source of income for the gas transmission system operator in Ukraine.

The CEO of the Gas Transmission System Operator, Dmytro Lippa: 'In 2024, 85% of the company’s income came from the transportation of Russian gas. The share of income from domestic consumers was only 15%.'

According to Lippa, the new tariff will not fully cover all needs, but the company acknowledges the necessity of making economically justified decisions. Lippa also noted that the Gas Transmission System Operator is cutting costs by closing compressor stations, optimizing personnel, and implementing other measures.

According to the NKREKP decision, the tariff for natural gas transportation will increase from 124.16 UAH to 501.97 UAH per 1000 cubic meters, which is an increase of 305%.

Business representatives who participated in the meeting warned about serious consequences for the industry. The head of the Federation of Metallurgists, Serhii Bilenkyi: 'For the industry, this means an increase in annual costs by 300 million UAH. In current conditions, when tariffs for electricity are also rising, companies will not be able to bear such additional financial burdens.'