The Ministry of Economy published the price of gas for the calculation of rent for August and September

On October 18, the Ministry of Economy of Ukraine published the actual gas sale price, from which the rent for natural gas production is calculated, for August and September 2022. Yes, the price is:

• for August 2022 - 24,045.3 UAH/tcm (without VAT);
• for September 2022 - 39,952 UAH/tcm (without VAT).

As a reminder, according to the law that came into effect on August 1, 2022, the actual gas sale price is calculated as the maximum of the following values:

- The weighted average price of natural gas supplied by producers in accordance with contracts with Naftogaz concluded as a result of auctions at organized trading platforms. According to the Ministry of Economy, no relevant contracts were concluded in July and August. Note that Naftogaz bought gas on the SaaS Platform UICE, but the platform does not have a license for commodity exchange trading.

- The weighted average price of natural gas supplied by producers to other customers (except Naftogaz), in accordance with contracts concluded as a result of auctions at organized commodity platforms. In July, there were no such deals, in August Kyiv Metro purchased 77 tcm of gas on the Ukrainian Energy Exchange for September-October at a price of 39,952 UAH/tcm (without VAT) on terms of up to 30 days' payment.

- The arithmetic average price of UA-VTP (Front month), which is calculated as the arithmetic average value between the Bid and Ask prices in Argus and ICIS reports. For August – 24,045.3 UAH/tcm (without VAT), for September – 36,004.235 UAH/tcm (without VAT).

Thus, in September, the actual gas sale price reached the highest level in history, even though it was tied to the domestic market.