RISE IN GAS PRICES TO ESCALATE SOCIAL TENSION IN ARMENIA

ARKA
March 24, 2010

YEREVAN, March 24. /ARKA/. Raise of gas price will escalate social
tension in Armenia, Aram Sargsyan, leader of Democratic Party of
Armenia, said Wednesday at a press conference.

He thinks public disaffection accumulating in the country can escalate
into a powerful wave of protests, especially when gas price raise
drive other prices up.

Natural gas price for Armenia’s consumers will be raised 37.5% to
AMD 132 on April 1, 2010, from present AMD 96 per one cubic meter.

Those consumers using more than 10,000 cubic meters of gas monthly
will pay $243.13 per each 1,000 cubic meters instead of $215 presently.

Armenian Democrats’ leader said that the government doesn’t understand
full gravity of the situation, and this gives ground for doubting
government members’ competence.

Speaking about inflation, Sargsyan said that things on Armenia’s
import market are uncontrollable.

"Shady dealing is not lessening here. Instead, it is flourishing. And
all the statements of the government are nothing more than mere words."

Sargsyan said that the government should order prosecution of economic
entities for unjustified raise of prices.

He said a good will is needed for that.

Otherwise, the current situation can trigger a social burst.

According to the National Statistical service of Armenia, the country
recorded 8.2% inflation in January and February 2010, compared with
the same period a year before.

Armenian government planned 1.2% economic growth and 4±1.5% inflation
in the 2010 state budget. ($1= AMD 399.33).