Головна Economics and agricultural policy Memorandum on stabilization of gas prices does not work, bread prices may...

Memorandum on stabilization of gas prices does not work, bread prices may rise

Association of baking industry enterprises “Ukrhlibprom” states that the Memorandum on stabilization of gas prices does not work, so the growth of bread prices is possible.

“The memorandum of December 31, 2021, signed by representatives of baking and milling associations, does not work yet, as the issue of providing baking and milling enterprises with gas at a preferential price is under negotiation,” said the general director of Ukrhlibprom Olexandr Vasylchenko, reports “ProAgro Group” with reference to “Ukrainian News”.

According to him, the price of gas for businesses has increased by 10 times during the year, the companies sign contracts on the market price of gas from 47 thousand UAH to 58 thousand UAH including VAT for 1 thousand cubic meters.

He noted that as of January 11, 2022, there is no real decision on the supply of gas at a reduced price.

“Enterprises bear losses. As an interim solution we have reached an agreement, especially with major retail chains, to raise the price of mass types of bread in January by 10%. If the preferential price of gas for bakeries will not become a reality – we should expect a further sharp rise in prices of bread and bakery products,” – said Vasylchenko.

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