The final cost of gas for households includes the cost of gas production, its transportation via high-pressure main gas lines and transportation through gas distribution networks, owned by the regional gas companies (oblgaz). One should add the price of delivery and mark-up by oblgaz and Naftogaz.
The breakdown of the final price of the natural gas for vulnerable populations as of 1 November 2018 (prior to the government’s decision to increase the cost of gas for the population by 23.5%) is as follows: production — UAH 4,942; transportation — UAH 263; distribution — 616; oblgaz delivery and mark-up — UAH 148; and Naftogaz mark-up — UAH 112.
After raising the gas price for the population, aforementioned components of the cost of gas are likely to remain intact, with all changes occurring in price characteristics.
