Prices On Gas To Increase

PRICES ON GAS TO INCREASE

Hayots Ashkhar Daily
Published on April 16, 2008
Armenia

Beginning May 1, prices on gas will increase in accordance with the
decision of the Public Services Regulatory Commission. The consumers
of natural gas will not receive compensation from the Government as
it was done after April 1, 2006 when the prices on gas imported to
Armenia increased to 110 US Dollars on the border of Armenia.

The Government decided to provide subsidies for moderating the prices
established by the Public Services Regulatory Commission. Therefore,
with the purpose of alleviating the burden of the population and
the industry, a sum equivalent to USD 188.8 million was allocated to
"ArmRussGazprom" company as a partial compensation for the established
prices on natural gas. In case of consuming up to 10 thousand and
more cubic meters per month, a subsidy was provided in the amount of
25 thousand Drams out of the established price of 84 thousand Drams
per 1000 cubic meters, and in case of consuming 10 thousand and more
cubic meters per month, a sum equivalent to USD 52.01 was granted as
a subsidy out of the sum of USD 153.26 per 1000 cubic meters.

As a result of the unprecedented growth of the volumes of gas
consumption, the subsidy equivalent to USD 188.8 expired at the end
of January, 2008.