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ARF questions government’s ability to fulfill the promise not to raise natural gas price

04.03.2011, 21:30
Vahan Hovhanesian, head of the opposition Armenian Revolutionary Federation’s (ARF) parliamentary faction, questioned today the Armenian authorities ability to fulfill the promise not to raise the price of natural gas for Armenian households this year.
YEREVAN, March 4, /ARKA/. Vahan Hovhanesian, head of the opposition Armenian Revolutionary Federation’s (ARF) parliamentary faction, questioned today the Armenian authorities ability to fulfill the promise not to raise the price of natural gas for Armenian households this year.

During a meeting in St. Petersburg last week Armenian and Russian presidents agreed that the price of natural gas for Armenian consumers will not rise in 2011.

“The agreement reached by presidents of Russia and Armenia is about the price of gas to be paid by consumers, not by the national gas operator ArmRosGazprom. We believe that once the price for the operator is raised Armenian officials would move to raise it for end consumers as well,’ Hovhanesian told a parliamentary briefing today.

He said it was strange that the cost of transportation Russian gas from Siberian Surgut to Armenian border was as much as the cost of shipping it from the border to Armenian consumers, that is $180 per one thousand cubic meters. As a result consumers pay $360 per one thousand cubic meters.

He said the authorities need to consider an effective pricing formula and establish why the price is so high for consumers.

Russian Gazprom that holds more than 80% in Armenia’s national gas operator ArmRosGazprom, raised the cost of gas for Armenia by 14 percent in 2009 and by another 17 percent in 2010 April to $180 per thousand cubic meters. Following it the Armenian Pubic Services Regulatory Commission (PSRC) approved a 37.5 percent surge in the gas price for households requested by ArmRosGazprom. Last September Gazprom said it would gradually bring its gas tariffs for Armenia, Moldova and Belarus up to “market-based” international levels in the coming years. Gazprom currently sells gas to western and Central European countries for over $300 per thousand cubic meters. -0-