Gas: the most available energy resource in Armenia?
The situation is controversial: despite obvious dissatisfaction with
raise in gas tariffs, number of gas consumers in Armenia keeps
growing.

Concurrently to an increase in gas tariffs on April 1, 2010, prices at
gas stations also went up, reaching AMD 200 per 1 kg instead of the
previously established AMD 180. As a PanARMENIAN.Net correspondent was
told at the transport department of Yerevan Mayor’s Office and at the
RA Ministry of Transport and Communication, transport workers have not
requested price increase so far.

April 10, 2010 AMT
PanARMENIAN.Net –

Gas prices in Armenia went up from AMD 96 to 132 per cu m. Enterprises
consuming over 10 000 cubic meters monthly pay $243.13 per 1000 cu m.
The Public Services Regulatory Commission explained the 37% rise in
prices for population and 13% for enterprises by a 17% up for Russian
gas, AMD/USD reference exchange rate, 20% reduction in natural gas
consumption and necessity to compensate ArmRosgazprom’s investments.

Despite the rise in prices, gas remains the most available energy
resource in Armenia, a spokesperson for ArmRosgazprom, Shushan
Sardaryan said.

`The company repeatedly expressed concerns over the socio-economic
situation caused by the rise in prices. But gas can’t be sold below
cost,’ the spokeswoman stated.

`Raise in pensions and benefits in connection with the increase in gas
rates is a small positive step, which, however cannot be a radical
solution to inflationary pressures,’ Artsvik Minasyan , Deputy
Chairman of the NA Standing Committee on Financial, Credit and
Budgetary Affairs, ARF Dashnaktsutyun member told a news conference on
March 5.

"Inflation has "eaten up" all these increases in pensions and
benefits. The government’s steps towards overcoming the crisis are
very cautious and superficial," he stressed.

RA Deputy Finance Minister Vardan Aramyan disagreed, noting that the
expected increase in benefits from May 1 to AMD 3.5 thousand will not
only compensate the rise in gas prices, but also cover increasing
prices for other products in inflation circumstances.

"In the minimum consumer basket of AMD 28.8 thousand, the share of
utility expenses is AMD 2.6 thousand, including AMD 500 for natural
gas, increased to AMD 700 after the 37.5 per cent raise in gas
tariffs," RA Deputy Minister of Finance explained.

According to recent official data, the number of gas consumers has
increased by 10 000, totaling 600 000 regardless of the scheduled
April 1, 2010 tariff increase. The situation is controversial: despite
obvious dissatisfaction with raise in gas tariffs, number of gas
consumers in Armenia keeps growing.

Victoria Araratyan / PanARMENIAN News