HUMAN RIGHTS DEFENDER URGES GOVERNMENT HELP VULNERABLE FAMILIES AND SMALL BUSINESSES AVOID CONSEQUENCES OF GAS PRICE HIKE

ARKA
Feb 25, 2010

YEREVAN, February 25, /ARKA/. Armenia’s government-appointed human
rights defender Armen Harutyunian urged the government today to draw
up a social package to help insecure and vulnerable families as well
as small and medium businesses avoid the heavy consequences of an
imminent rise of natural gas price from April 1.

Speaking at a news conference after his yesterday’s meeting with
the chairman of the Public Services Regulatory Commission (PSRC) he
said although his office did not made any substantial analysis of the
situation after the rise of price, it is clear that it would eventually
help some business entities to tighten their grip on the local market.

In his words, the price hike would bring about favorable conditions
for monopolies’ blossoming, because they would get privileges, while
small and medium entrepreneurship would be suppressed.

Armenia’s natural gas operator, Russian-Armenian ArmRosGazprom (ARG)
asked the Public Services Regulatory Commission to revise upward
the prices for consumers which use up to 10,000 cubic meters of gas
a month and suggested a new pricing formula for consumers that use
10,000 cubic meters and more.

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.

An official of the PSRC said that the price for households will 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).