Gas for schools and hospitals may significantly rise from October, cities oppose

In Ukraine, starting October 1, they propose almost 58% increase of the fixed price of natural gas for budget-funded institutions - from 16,390 to 25,875 UAH per 1 thousand cubic meters including VAT. The changes may affect schools, kindergartens, hospitals, social institutions, and resilience centers.

This was reported by the Association of Cities of Ukraine. It concerns the draft amendments to Cabinet of Ministers' Resolution No. 812, which on September 4 was supported by the government committee on restoration of Ukraine, development of communities, territories, infrastructure, transport, and housing and communal services.

Thus, the cost of 1 thousand cubic meters of gas for the budget sphere is proposed to be increased by 9,485 UAH, or approximately 58%.

However, there is no final decision of the Cabinet of Ministers regarding the price increase yet. At this stage, it is about the draft resolution supported by the government committee.

Cities opposed the increase

The Association of Cities of Ukraine stated that it opposed the proposed increase. The organization believes that additional costs will significantly increase the burden on local budgets, since a significant part of budget-funded institutions is financed by communities.

Deputy Executive Director of the Association of Cities of Ukraine Yaroslav Raboshuk stated that before increasing the cost of gas, sources of financing of additional costs in budgets of territorial communities must be determined.

The Association also warned that without additional funding, the decision may create problems during the heating season and operation of resilience centers. The organization called on the Cabinet of Ministers to reject the proposed increase.

The increase was already proposed in summer

A similar project was discussed back in July. Then the Association of Cities of Ukraine refused to approve it and stated that increasing the price from 16,390 to 25,875 UAH per 1 thousand cubic meters requires amendments to the Budget Code and determination of sources of compensation for additional costs of communities.

The Association reminded that the previous significant increase of gas price for budget-funded institutions occurred in 2021 - approximately from 8,000 to 16,000 UAH per 1 thousand cubic meters. At that time, additional revenues of local budgets from an increase in the share of personal income tax were provided simultaneously.

Based on materials from: Association of Cities of Ukraine