Armenian public services regulatory commission approves new gas prices
28.02.2009,
01:36
The RA Public Services Regulatory Commission has approved the new gas price – 96,000 AMD for 1,000 cubic meters against the present 84,000 AMD. The new price is to take effect from April 1.
YEREVAN, February 27. /ARKA/. The RA Public Services Regulatory Commission has approved the new gas price – 96,000 AMD for 1,000 cubic meters against the present 84,000 AMD. The new price is to take effect from April 1.
The gas consumers using over 10,000 cubic meters of gas will pay $215 for 1,000 cubic meters.
In its application ArmRosgasprom proposed 99,000 AMD for 1,000 cubic meters.
Ashot Hovsepyan, ArmRosgasprom Vice-Chief Executive Officer, said that the company is not satisfied with the newly approved price as it challenges the execution of the company’s commitments and may force it to abandon a number of plans as “even now the company’s margin does not allow it to implement some projects”.
According to him, the new prices will reduce profits, and, with the unfavorable economic situation considered, the company will hardly execute its commitments.
Commission Chairman Robert Nazaryan pointed out that the average Armenian consumer uses 1,000 cubic meters a year. Therefore, a 12 AMD rise in the gas price means a 12,000 AMD rise a year.
“We realize this is an additional burden for the population. However, we hope that the Government will make steps. Specifically, last year the Government planned to raise pensions, social allowances and salaries for some population groups,” Nazaryan said.
The ArmRosgasprom CJSC holds a monopoly of distribution of Russian natural gas in Armenia.
The company was founded in 1997. The share of the Gazprom OJSC in the company’s authorized capital is 75.55%, the rest being held by the RA Government (20%) and Itera Company (4.44%). –0--
The gas consumers using over 10,000 cubic meters of gas will pay $215 for 1,000 cubic meters.
In its application ArmRosgasprom proposed 99,000 AMD for 1,000 cubic meters.
Ashot Hovsepyan, ArmRosgasprom Vice-Chief Executive Officer, said that the company is not satisfied with the newly approved price as it challenges the execution of the company’s commitments and may force it to abandon a number of plans as “even now the company’s margin does not allow it to implement some projects”.
According to him, the new prices will reduce profits, and, with the unfavorable economic situation considered, the company will hardly execute its commitments.
Commission Chairman Robert Nazaryan pointed out that the average Armenian consumer uses 1,000 cubic meters a year. Therefore, a 12 AMD rise in the gas price means a 12,000 AMD rise a year.
“We realize this is an additional burden for the population. However, we hope that the Government will make steps. Specifically, last year the Government planned to raise pensions, social allowances and salaries for some population groups,” Nazaryan said.
The ArmRosgasprom CJSC holds a monopoly of distribution of Russian natural gas in Armenia.
The company was founded in 1997. The share of the Gazprom OJSC in the company’s authorized capital is 75.55%, the rest being held by the RA Government (20%) and Itera Company (4.44%). –0--
