Inevitable 40 percent

A few days ago it became known that that Armenia’s major natural gas supplier, Hayrusgazard, (ArmRosgasprom) and the Transgas company asked the Public Services Regulatory Commission to consider a proposal for raising the natural gas prices.

They have proposed a formula for the consumers who use monthly up to 10,000 cubic meters of natural gas, and elaborated new service delivery terms, says a statement on the Hayrusgazard website.

The companies calculations’ suggest that the monthly per cubic meter tariffs for the above consumers has to rise from 132,000 Drams ($317) to 221,000 ($532) Drams (including the value added tax).

Yesterday Prime Minister Tigran Sargsyan said that he had sent a letter to the Chairman of the Commission on regulation of public services in connection with the revision of gas prices, and stated that the Government of the Republic of Armenia would subsidize gas tariff for 30%.

Then the chairman of the Public Services Regulatory Commission, Robert Nazarian confirmed that the price of gas would rise for sure.

"I have repeatedly raised the issue that the rise of gas price is inevitable. Gas is valued at $180 does not exist. In Europe today the average price of gas is above $300, and the issue is solved in the Kremlin. This was a problem in the area of foreign policy. When "ArmRosgasprom" was formed, actions of Armenia were 45 percent, then fell to 20 percent, and now there is good reason to think that there is not 20-percent. Economic discipline in our country is lame", in an interview with Lurer.com the chairman of the Union of Consumers of Armenia Armen Poghosyan said.

According to Pogosyan, no one can say the final percentage increase in gas price, but experience shows that the increase will be in 40%.