Debates have resurfaced in Ukraine about subsidizing gas prices for households. The expert highlights that current tariffs are well below market prices, a policy justified by the ongoing war and the need to maintain social stability. However, this decision could harm the economy and energy independence in the long run.
The author notes that maintaining low prices is often driven by political motives ahead of elections. The lack of systemic reforms and unwillingness to gradually adjust prices to market levels could lead to future financial destabilization. Companies funding these subsidies miss out on investments needed for infrastructure and gas production, resulting in stagnation in the sector.
Keeping tariffs artificially low discourages energy saving, distorts resource efficiency, and allows property owners to waste gas. There is a risk that if foreign financial support stops, the country could face an economic crisis.
As an alternative, targeted subsidies for socially vulnerable groups and gradual annual price increases at least in line with inflation are suggested. This approach would help reserve state resources for defense and investment in energy, while also motivating citizens to save.
The author stresses the importance of thinking for the future, avoiding recurring past mistakes, and gradually acclimating the population to economic realities. The conclusion is that maintaining the moratorium on gas price increases is a setback for reform and the development of the Ukrainian economy.
