Natural gas for households will be cheaper by 18 percent from April 1

The government made decisions on Wednesday based on which natural gas for households should become cheaper by 18 percent from the beginning of April.

– For households, we can expect a price reduction of approximately 18 percent, depending on the costs of distributors, said Minister of Economy Tomislav Panenić.

Regarding the price of gas for industry, he responded that prices for industry are not regulated, but are determined by the market and that the government does not decide on this. These prices, says Panenić, are currently in line with low prices in the region and the industry benefits from this.

The government has, in fact, made decisions on the price of gas under which the natural gas producer, i.e., Ina, is obliged to sell gas produced in the territory of Croatia to the supplier on the wholesale market, i.e., Hrvatska elektroprivreda (HEP), and a decision on the price at which HEP is obliged to sell gas to suppliers in the public service of gas supply for customers in the household category.

According to these decisions, Panenić stated, Ina will be obliged to sell gas produced in the territory of Croatia to HEP at a price of 0.1369 kuna per kilowatt-hour (kWh), which is a 20.1 percent lower price than now (0.1715 kuna per kWh), and HEP will sell gas to suppliers in the public service of gas supply for households at a price of 0.1734 kuna per kWh, which is a 24.2 percent lower price than now (0.2289 kuna per kWh).

According to the government’s decisions, these new, lower prices will apply from April 1 of this year to March 31 of next year. The reduction in gas prices for households was unofficially announced about ten days ago, after the Management Board of HERA gave a positive opinion to the Ministry of Economy on the proposals for decisions made by the government today at a meeting held on March 11. This announcement of the price reduction was justified by the decline in wholesale gas prices in Europe, given that gas prices follow the decline in oil prices in the market with a delay.