24.09.02

Neftegaz Ukrainy And Financial Committee Of Parliament Plan To Optimize Company’s Taxes

The State-owned company Neftegaz Ukrainy plans to create in conjunction with Parliament’s committee for finance and banking activities, a joint working group regarding preparation of draft laws with respect to taxation of the oil and gas sector.

In particular, the group will deal with issues of optimization of taxation for Neftegaz Ukrainy, and also issues of financing activities on expanding the oil and gas extractive sectors.

Neftegaz Ukrainy had earlier requested the Cabinet of Ministers to reduce the rate of renting payments for operating field to its subsidiary oil and gas enterprises, and also the rate of remittances from fees the company pays for transit of gas through Ukraine.

In the words of the chairman of the management board of Neftegaz Ukrainy, Yury Boiko, reduction of taxes will enable the company to increase financing of oil and gas extractive infrastructure of Neftegaz Ukrainy, and also financing of activities with respect to developing new fields.

Boiko had previously also said that due to large taxes, the gas transport system yearly does not receive 60% of the necessary financial resources.

Neftegaz Ukrainy is the largest supplier of gas in Ukraine and holds a monopoly on gas transport as regards to the gas transit pipelines.

Neftegaz is made up of the largest gas extractive company called Ukrgazdobycha, the company Ukrtransneft, which owns the stretch of oil-main pipelines, and the largest extractor of oil and gas at the shelf of the Black Sea, the company Chernomorheftegaz.

In 2001, oil drilling and gas condensed fluid in Ukraine increased by 0.3% in comparison with 2000, to 3,708,7 million tons, whereas gas extraction increased by 1.6% to 18,348,6 million cubic meters.

(Ukrainian News, Vitalii Davii) 

Retail Prices For Petroleum Products Rose 5-14% On September 10-20.

Retail prices for petroleum products rose by 5-14% on September 10-20, continuing the increase that started in the end of August.

In particular, prices for diesel fuel rose by 6%, to UAH 1.42-1.76 per liter in the Donetsk, Kiev, and Odessa regions and in the Crimea.

The average price for diesel fuel in Ukraine totaled UAH 1.50-1.52 per liter.

The lowest price for diesel fuel was recorded in the Sumy region, UAH 1.30 per liter. The maximum price was recorded in the Crimea and Sevastopol - UAH 1.76 per liter.

Diesel fuel prices in other regions remained unchanged at UAH 1.40-1.51 per liter.

Prices for A-76 gasoline significantly rose by 14% to UAH 1.35-1.90 per liter in the Zhitomir, Volyn, Donetsk, Zakarpatie, Kirovograd, Lvov, Odessa, Rivne, Ternopol, and Chernovtsy regions, and in the Crimea.

The average price of A-76 gasoline in Ukraine was UAH 1.52-1.62 per liter.

The lowest price for A-76 gasoline was recorded in the Cherkassy region - UAH 1.35 per liter. The highest price was recorded in the Donetsk region - UAH 1.90 per liter.

In the rest of regions the price of A-76 gasoline remained stable at UAH 1.50-1.55 per liter.

Prices for A-95 gasoline rose by 5%, to UAH 1.94-2.30 per liter in the Zaporozhie, Kirovograd, and Sumy regions, and in the city of Kiev.

In most regions, A-95 gasoline costs UAH 2.00-2.04 per liter.

The cheapest A-95 gasoline was recorded in the Cherkassy region - UAH 1.83 per liter.

The most expensive A-95 gasoline was found in the Donetsk region - UAH 2.35 per liter.

Prices for A-95 gasoline remained the same in other regions - UAH 1.95-2.03 per liter. Retail prices for petroleum products have been dropping since late January. Before that time, they have been going up since the beginning of 2002.

(Ukrainian News, Vitalii Davii)