First Deputy Prime Minister Andriy Kliuyev has instructed the local authorities to take urgent action to reduce the price of liquefied gas sold to households, Kliuyev's press service reported on Tuesday.
Speaking during an intercom meeting, Kliuyev said that retail prices exceed wholesale ones by 2.2-6.5 times.
He mentioned a specialized auction held in May, at which 192,300 tonnes of liquefied gas scheduled for sale May through December 2011 were sold at a price of UAH 2,130 per tonne.
"If the wholesale price of one cylinder with liquefied gas was UAH 44.73, the retail price cannot be higher than UAH 90-100," he said.
An increase in retail prices of liquefied gas was registered in 15 Ukrainian regions. In particular, a cylinder of liquefied gas in Cherkasy region is sold for UAH 98.90, and the highest prices are registered in Kherson region, where a cylinder is sold for UAH 291.67. High retail prices are also seen in Crimea (UAH 250 per cylinder), Odesa region (UAH 204.54) and the city of Sevastopol (UAH 195).
In this connection, Kliuyev commissioned the Economic Development Ministry to analyze within one day the price of liquefied gas in cylinders that is sold to households in each region, and determine the economically justified limit price. NJSC Naftogaz Ukrainy was also instructed to analyze within one day’s demand for liquefied gas in each region.
"What right do you have to tolerate such a situation? This is mocking our citizens! The price should be brought to a justified level within one week. If someone decided to line their pockets from the population, we will know their names. If it is the mismanagement of certain managers, they must be held to account for this," the press service quoted Kliuyev as saying.
As reported, the Antimonopoly Committee of Ukraine on August 19, 2011, announced it was checking how liquefied gas market operators observe competition laws, as prices of that type of gas had grown by 17% on average.
The committee sent inquiries for price explanations for large liquefied gas producers, in particular, PJSC Ukrnafta (Ukraine’s largest liquefied gas producer), Ukrgazvydobuvannia, Lysychansk oil refinery (PJSC LINIK in Luhansk region), Kremenchuk oil refinery (PJSC Ukrtatnafta in Poltava region).
