NATURAL GAS PRICE HIKE A NECESSITY: PSRC MEMBER

ARKA
Feb 23, 2010

YEREVAN, February 23, /ARKA/. A member of the Armenian Public Services
Regulatory Commission (PSRC) backed Monday an application of the
national gas operator, ArmRosgazprom (ARG), seeking an upward revision
of the price of gas sold to households and industrial enterprises.

Speaking at a news conference at Novosti international press
center Samvel Abajanian said a gas price hike for end consumers is
a necessity. He said the PSRC will consider ARG’s application on
February 26.

ARG press office said earlier its application calls for upward revision
of prices for consumers which use up to 10,000 cubic meters of gas
a month and suggests a new pricing formula for consumers that use
10,000 cubic meters and more. The application calls also for revision
of prices for ARG’s services, distribution and transportation.

According to the application, ARG wants households to pay 136,000
Drams per one thousand cubic meters of gas, up from the current
96,000 Drams, VAT included. The company has also proposed to change
the pricing formula for consumers that use 10,000 and more cubic
meters of gas a month.

Samvel Abajanian said the PSRC suggests that the price for households
rise to 132,000 Drams. He said the proposed price is based on a series
of investigations and an analysis of how much the ARG proposed price
is grounded.

The price of Russian gas for Armenia rose from $110 to $154 per one
thousand cubic meters in 2009 April and is expected to rise to $180
from April 1, 2010 under a Russian-Armenian accord. ARG is the sole
gas supplier to Armenia. Russian Gazprom owns 80% in it, the rest is
held by the Armenian government. ($1 – 381.75 Drams).
From: Baghdasarian