Gas transportation rates to grow by 305% in 2025 – reports
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Ukraine’s gas transportation tariffs for domestic consumers will grow 4-fold – leaping from 124.16 to 501.97 hryvnias per 1,000 cubic meters starting January 1, after the increas was approved by the National Energy and Utilities Regulatory Commission on Monday.
The main driver of this hike is the halt in Russian gas transit. Dmitry Lippa, CEO of Ukraine’s Gas Transmission System Operator (GTSO), said that the year 2024 saw 85% of the company’s revenue coming from transporting Russian gas. With only 15% now coming from domestic clients, revenues fall far short of covering operational costs.
Lippa said that the GTSO is taking steps to cut expenses, including shutting down and mothballing compressor stations, reducing staff, and slashing budgets.
The new tariff is expected to hit Ukrainian industries hard. Serhiy Bilenky, who charis the Federation of Metallurgists, warned during the meeting that the metallurgical sector alone will face an additional 300 million hryvnias in costs annually. Combined with rising electricity prices, these changes impose a heavy financial burden that could threaten the viability of many Ukrainian businesses.
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