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Drop in gas prices does not imply rapid drop in commodity prices

04.11.2016, 16:20
The promised decline in gas tariffs by the government of Armenia does not entail a rapid and sharp decline in commodity prices, especially in food prices, the head of the National Union of Employers Gagik Makaryan told a news conference today.

Drop in gas prices does not imply rapid drop in commodity prices
YEREVAN, November 4. /ARKA/. The promised decline in gas tariffs by the government of Armenia does not entail a rapid and sharp decline in commodity prices, especially in food prices, the head of the National Union of Employers Gagik Makaryan told a news conference today.

"Greenhouses will be getting cheaper gas from next January and their products will appear in the market only several months later and the produces of processing enterprises only after June," – Makaryan said.

According to him, only the prices of those products could drop whose production requires a lot of electricity, such as bread.

"If the proposed rates are maintained, the population will see their effectiveness, but if it is only for one season, then we should hope for nothing. We will feel the multiplier effect only if the proposed tariff plan is long-term ", - said Makaryan.

According to Makaryan, Gazprom Armenia, the national gas distributing company, has always had possibilities to reduce the gas price, but until now there was no desire. He believes that the decline in gas tariffs by 46% should be for all, not just for some groups. -0-