Introduction. The gas distribution system in the regions of the state is significantly influenced by both external and internal factors, and like any economic structure in a competitive environment must strive for effective economic development. The quality of such development depends to a large extent on the state’s ability to ensure the formation of an appropriate regulatory environment, both at national and regional taxonomic levels. Gas markets in the regions of Ukraine face a number of development problems caused by the lack of proper competitiveness conditions, the need to improve technical and technological support of capital assets, the formation of a balanced tariff system that would allow to reconcile the interests of both gas suppliers and consumers. This will contribute to the formation of liberalized gas markets in the regions of the country and at the national level. The purpose. The purpose of the research is to identify regional features and problems of organizational and economic regulation of the functioning of gas distribution companies in Ukraine and recommendations substantiate for improving the efficiency of regulatory processes. Results. In the article the development peculiarities of regulation processes of gas distribution companies in the regions of Ukraine are analyzed. The problems of forming the organizational and economic support of the functioning of the state gas market are outlined. Recommendations for improving the efficiency of the gas distribution system in the regions of the state are justified and the prospects for its development have been determined. Conclusion. It is noted that the efficiency and reliability of the gas transportation system depends on the effectiveness of organizational and economic support – the activities of economic entities that influence the development of gas distribution companies through the interaction between individual participants in the gas market and market infrastructure. Keywords: gas transportation system, gas transportation company, gas distribution companies, tariff, pricing, energy security, gas security, institualization, organizational and economic mechanism, Ukraine.