The government should adjust the price of natural gas on the domestic market to the level of import parity, which will contribute to the development of a free gas market and encourage consumers to save energy consumption. Of such requirement, the IMF said the Fund’s resident representative in Ukraine Jost Longman, UNIAN reports.

“Obligations under the program supported by the IMF, envisage the bringing gas prices into line with the level of imports. In the end, the final goal is the implementation of a free gas market. On the way to it is important to continue to adjust the price of gas in accordance with the price of imports,” he said.

According to Longman, market gas prices in the domestic market will stimulate the implementation of energy saving measures and promote the efficient allocation of resources.

“They allow the gas sector to cover the costs and to obtain resources for investment in gas infrastructure. Thanks to them, the gas market comes a new company that encourages healthy competition. Single price for all types of consumers also eliminates the space for corruption”, – said the IMF representative.

Evaluating the results of changes in the gas market of Ukraine, Longman said that the reform of energy prices is “one of the greatest accomplishments of the reform efforts of Ukraine for the past years.”

“It is important that the price was determined by the market, and the practice of hidden and non-income recipients of the grants are not renewed. It is worth while to note that under the current system of support of the population, households with the lowest incomes are protected from increases in gas prices, subsidies for communal services”, – said Longman.

Earlier, the IMF has listed, what actions should be taken by the Ukrainian government for the next tranche of the Fund.

The IMF insists on raising gas prices in Ukraine 18.12.2017

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