Current gas price to remain unchanged for Armenian consumers: head of president’s administration

Current gas price to remain unchanged for Armenian consumers: head of president’s administration

YEREVAN, December 4. /ARKA/. The current gas tariff will remain unchanged for Armenian consumers, head of Armenian president’s administration Vigen Sargsyan said.

As from July 7 Armenia’s public services regulatory commission approved gas tariffs for consumers – 156,000 drams per 1,000 cubic meters, as compared to 132,000 drams before.

Sargsyan said the agreement made with the Russian side allows maintaining gas prices stable.

“We have fixed a formula for calculation of tariffs for the gas supplied for the next five years: it is very important as over the last 5 years gas prices have changed five times. It has not always resulted in a in increase for consumers, but every time the government was seeking for ways to compensate for the increase, yet not hitting at consumers’ interests”, Sargsyan said.

The head of the administration also said the increase created an extra burden on the country’s budget, hence a decision was made to hand the 20% of ArmRosgasprom’s shares over to the Russian side to make up for the difference between the gas price and consumer price.

If no agreement was reached with Russia, the domestic tariff would need to be revised again, he said.

“In fact, we have managed to avoid this not only for the near future, but for the next five years”, he said adding now the gas price for Armenia is tied up with the Russian domestic tariff, which is an advantage.

Following the negotiations of the presidents Sargsyan and Putin, Armenia and Russia signed a number of documents in gas sector envisaging, in particular, increase in Gasprom’s share in ArmRosgasprom to 100% and reduction in gas price for Armenia to 189 dollars per 1,000 cubic meters as compared to 270 dollars before.

Apart from this, Gasprom Export ojsc and ArmRosgasprom signed a contract obliging the Russian gas holding to supply up to 2.5 billion cubic meters of gas to Armenia every year; the price will be defined by the Russia gas pricing formula. ($1=403.91drams). –0--

12:26 04.12.2013

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