Babak: Soon people in Ukraine will be spending all their earnings on gas

MP Aliona Babak points out the lack of economic logic in the new government’s formula for the change of the gas price and the dishonesty of the government in relation to people. First, the government makes people poor by increasing the super profits of gas producing companies and then invents various mechanisms for protecting people with subsidies.

At the same time, Ukraine produces its own gas, which makes up 60% of what we – the population and business – consume. But according to the new rules, we have to pay the European price for this gas and most likely it will be one and the same supplier – the company Naftogaz of Ukraine – that will make money from it all.

“We are currently paying 7 hryvnias for 1 cube of gas, and almost two hryvnias from this is the net profit of Ukrhazvydobuvannia company.” And, for some reason, even under these conditions, we are still forced to raise the price of gas to the so-called import parity.”

And the price of gas will keep growing, because the government has virtually no alternative: “The government is under time pressure. On the one hand, it should do something and show its activities to the IMF; on the other hand, it understands that the election process is ongoing and a very large number of people are dependent on subsidies. During the last heating season, there were 6.5 million families receiving subsidies. Such a large number of people are below the poverty line, and they are going to learn from the government that the price will rise by almost 60%. The government understands all the consequences.”

Babak says the price of heat is becoming unaffordable for people, “A problematic structural change is taking place in the state’s economy because of the increase in the price of gas. That is, soon all people in Ukraine will go to work only to be able to pay for gas. All the earned money will go to one industry exclusively – the gas industry. We are destroying the middle class, driving people into subsidies only because we equate the price of Ukrainian gas produced here to the price of European gas.”

Samopomich deputy hopes that the Prime Minister will listen to the representatives of the Association of Ukrainian Cities. The city mayors have already told Hroisman that it is impossible to change the price of gas without settling the stages of change in the price of heating. If thermal enterprises start buying gas not at a price of 7 thousand, but at a new one, let’s say, 11 thousand, and at the same time tariffs do not take into account this change, fines and penalties will immediately occur, and the taxpayers will have to pay them. Today, heat enterprises have more than 7 billion fines and penalties owed to Naftogaz.

“There are still two weeks remaining before the pricing rules on the natural gas market should change, and no one yet knows how this will happen and how the price will change. This is absurd, especially against the backdrop of the beginning of the heating season in the country,” says Aliona Babak.

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