Igor Mazepa: why raise the gas prices are painful for the population?

Igor Mazepa: the expert community and in the business environment is generally a funny topic, it is not worth a damn. And there is nothing to discuss.

What is happening now. Obviously, people pay some insignificant part of the market price at which it would buy gas on the market. Roughly speaking, if you go to the market and the kg of potatoes costs 20 UAH. it is obvious that your request to sell for 10 UAH. it will be funny. And no one will sell.

But our populist politicians are accustomed, unfortunately, the people to the fact that over the last 20 years has raised the topic of gas prices in such a “Sacred cow”. All assume that cheap gas is a given that it was unclear by whom: God, the President, opposition leaders or something. In fact, the situation is simple: each of us, me, you, Groisman, Poroshenko, Tymoshenko, COBOL, Vetrenko everyone else, as well as ordinary Ukrainians receive subsidies. Subsidies we receive from the state company Naftogaz, which buys gas for $ 300., and sells to the public for $ 150. Thus this difference-net loss from subsidizing their cash flow from their profits.

Mazeppa: what is now proposed by the government, that should have been taken 20 years ago. And there’s nothing wrong. The government was to each of us to offer to buy gas at $ 300. or for any other market price, which is formed at each moment of time. And thus offer an efficient mechanism for subsidizing the poorest segments of the population. Ie this means that neither COBOL nor Groisman, neither Poroshenko nor Igor Mazepa, nor all other business are not eligible for the subsidy, which now receive, including the rich people through the mediation of the mechanism of subsidies from oil and gas. Instead, everyone should pay the market price, but the poorest segments of the population should be compensated through a simple, clear an effective compensation mechanism. I.e. for each the little Ukrainian this means that the amount of money which he pays for utilities does not change the fact that Groysman received high price of gas or low. Or from the fact that Yulia Tymoshenko, will come to power, will reduce the price by 2-3 times. Every young Ukrainian must be indifferent to this whole debate.

Igor Mazepa: unfortunately, it happened so that politicians have elevated it to the rank of “Holy cow”. And we have what we have. In fact, literally 20-25 years as there is a country that is very politically sensitive topic. Unfortunately, it is very sensitive policy, and even more people who need to make a proper informed decisions in power.

Finally the decision was made. In the expert community and in the business environment gave him a round of applause. Sorry all it was not adopted 1.5 years ago, as was promised by the Prime Minister Groysman in conversations with the IMF. And there is an expectation that the Ukrainian government will keep his word and raise more this price in may up to 80 % of the market price, and by the middle of next year up to 100 % of the market price.

Once again, if or when the government will offer an efficient, transparent clear and simple method of compensation is not in any way affect the budgets of every Ukrainian, Ukrainian in particular. This turnover will lead to the establishment of justice. Can’t rich person to get a subsidy on gas. He has to pay 100 % of the price of this gas.

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