Should Ukraine have market prices for gas?

The objective of research on “Should Ukraine have market prices for gas?” is to answer whether it is expedient to transit from low, regulated gas prices for households to market prices.

The analysis of alternatives (to increase (or not) gas prices for households to the market level) demonstrated that market prices for gas have a number of advantages over low, regulated prices in terms of influences on public finances, energy efficiency, dependence on imports, possibility of corruption and the social component. In order to realize these advantages efficiently it is necessary to combine the increase of prices with offsetting measures which will provide a physical reduction of consumption and an adequate level of payments by implementing subsidy mechanisms for low-income groups while addressing non-payers.