Components of the Final Cost of Natural Gas for the Population

November 09, 2018

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.

source:

Maksym Bielawski

Leading Expert, Energy Programmes


Born in 1986 in Zhytomyr oblast

Education:

Zhytomyr State Technological University (2008)

Ph.D in Technical Science (2010)

Ivano-Frankivsk National Technical University of Oil and Gas (2012)

Author of 17 patents and 100 scientific works

Work Experience:

2008 – 2011 — Operator of Gas Infrastructure Units, Controller of Gas Transmission System in Rivne Division of PJSC "Ukrtransgas"

2011 – 2017 — Leading Engineer, Deputy Head of Press-Service, Head of Public Relation Department of PJSC "Ukrtransgas"

2017 – 2018 — HR Director of PJSC "Maine Gas Pipelines of Ukraine", Advisor to the Minister of Energy and Coal Industry of Ukraine

bielawski.maksym