Description
Prices in the natural gas market are constantly changing, depending on the prices on the international markets and many other factors, including seasonal ones. This leads to the need to adjust the price of current transactions, the underbidding of suppliers during tender and as a result, the biased pricing of the contract’s addendums. The decision that had already been proposed by the Cabinet is formula pricing. On the example of natural gas purchases worth more than UAH 1 million in the period from August 2017 to August 2018 we’ve calculated that if the price in the pre-contracts was determined by the formula, then the final price could be reduced by an average of UAH 620 per thousand cube. m., and the total savings would be almost 90 million UAH.
