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GROWTH IN GAS PRICES will lead to another increase in tariffs

06/ 10/ 2021
  Especially for obozrevatel.com comments of the Operating Director of G.R. Agro, Rempen A. on the increase in the cost of gas and the prospects for profitability of elevator services in the conditions of the energy crisis. High gas tariffs are not the only problem. Not every supplier in the current conditions agrees to supply blue fuel to business. For example, in the Dnepropetrovsk region, there were only three options, and you can use only the gas that you have already paid for (you will NOT be able to increase the volume). We are holding back prices for drying at elevators for now, just so that agricultural producers have the opportunity to work. It just wouldnt be possible to stop or raise prices. Its the season of sunflower, corn. Then they would have been left without sunflower oil and starch ... The situation is very depressing for us. This can be a disaster, we can only dry with gas. There are elevators in the country that operate on alternative energy sources. But there are very few of them, maybe 15-20% of the total, because they are technologically more complex, explains Rempen A. And if a simple Ukrainian can change the gas supplier in a matter of days, then the whole procedure can take months in the company. Now, G.R. Agro has received an offer to buy gas in October for 38 UAH /cubic meter. In such a situation, it is impossible to do without raising tariffs for farmers for drying grain. As a result, food prices will also rise.

Especially for obozrevatel.com comments of the Operating Director of G.R. Agro, Rempen A. on the increase in the cost of gas and the prospects for profitability of elevator services in the conditions of the energy crisis.

High gas tariffs are not the only problem. Not every supplier in the current conditions agrees to supply blue fuel to business. For example, in the Dnepropetrovsk region, there were only three options, and you can use only the gas that you have already paid for (you will NOT be able to increase the volume).

“We are holding back prices for drying at elevators for now, just so that agricultural producers have the opportunity to work. It just wouldn’t be possible to stop or raise prices. It’s the season of sunflower, corn. Then they would have been left without sunflower oil and starch … The situation is very depressing for us. This can be a disaster, we can only dry with gas. There are elevators in the country that operate on alternative energy sources. But there are very few of them, maybe 15-20% of the total, because they are technologically more complex,” explains Rempen A.

And if a simple Ukrainian can change the gas supplier in a matter of days, then the whole procedure can take months in the company. Now, G.R. Agro has received an offer to buy gas in October for 38 UAH /cubic meter. In such a situation, it is impossible to do without raising tariffs for farmers for drying grain. As a result, food prices will also rise.

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