Head of Armenia’s PSRC explains why price of Russian gas for households is twice the price at border

Head of Armenia’s PSRC explains why price of Russian gas for households is twice the price at border

YEREVAN, February 5. / ARKA /. Head of Armenia’s Public Services Regulatory Commission (PSRC) Robert Nazaryan told lawmakers today why the cost of Russian natural gas for Armenian households is   twice the price at the border with Georgia.

"Armenia’s gas distribution system consists of pipes of high, medium and low pressure, which requires different maintenance costs. Unlike large consumers, households are the last chain consumers and delivering gas to them is expensive requiring bigger investment," he argued.

According to him, gas for households consuming less than 10 thousand cubic meters a month passes a higher degree of decompression which adds to its final cost.

"Large enterprises consume high and medium pressure gas, which is cheaper,” said Nazarian. He stressed that without VAT margin the price of gas inside Armenia is not so high.

"The margin for gas for large enterprises consuming more than 10 thousand cubic meters a month is less than $90 ", said Nazarian .

Armenia buys gas from Russia at $189 per thousand cubic meters, but the households pay about $380 per thousand cubic meters. -0-

16:53 05.02.2014

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