GAS PRICE RISE NOT TO AFFECT ARMENIA’S LOW-INCOME GROUPS
ARKA
April 30, 2008
YEREVAN, April 30. /ARKA/. The expected rise in gas prices must not
affect the low-income sections of Armenia’s population, stated RA
Prime Minister Tigran Sargsyan.
"Our resorting to unpopular steps does not mean that we do not thing
about low-income sections of the population. We will first of all
identify low-income sections of the population and organize selective
aid for them," Sargsyan told a press conference.
On May 1, 2008, the RA Government will stop subsidizing gas-supply,
which has been practised since April 2006, when the price for Russian
gas supplied to Armenia was raised from $56 to $110 for 1,000 cubic
meters. From May 1, 2008, 1,000 cubic meters of gas will cost 90,000
AMD (about $300) (VAT included), and $146.51 for consumers of over
10,000 cubic meters a month (VAT included).
The RA Premier said that the RA Government also plans redistribution of
budgetary funds to relieve the negative consequences of the price rise.
T. Sargsyan reported that the issue of gas prices will also be
discussed during a visit to be paid to Armenia by Gasprom Board
Chairman Alexey Miller in May.
"We will discuss the issue and inform you of the results of the talks,"
he said.
On April 6, 2006, Gasprom and the RA Government signed a 25-year
agreement setting strategic principles of cooperation in gas-energy
projects in Armenia. Under the agreement, Gasprom pledged not to
raise gas prices until 2009.