Armenian consumers to feel gas price rise in winter

YEREVAN, April 16. /ARKA/. Armenian consumers will start feeling the gas price increase already in winter, ArmRosgasProm Executive Director Karen Karapetyan reported.

As from May, the government will stop the state subsidy on fees for natural gas supplies for households and enterprises, according to Karapetyan. From May 1, 2008, households and enterprises will pay over $200 and $153 per thousand cubic meters (against current $200 and $109).

Karapetyan assured the journalists that the gas price in Armenia is lower than in other countries. In Georgia, for example, the gas price is $356 and about $283 per thousand cubic meters for households and public entities respectively.
Karapetyan approved of the government decision on stopping the state subsidy on natural gas fees.

He pointed out that over 45% of the country’s total gas is consumed in winter time. Consumers will feel the heavy burden of gas fees only in the heating season, according to the ArmRosGasProm Executive.

The Government will support 130,000 socially vulnerable families to pay gas fees. According to Karapetyan, as from May 1, about 89,000 of consumers who annually use less than 300,000 cubic meters of gas will pay additional AMD 7,500 a year (about AMD 700 a month). Those 83,000 users who consume 300,000-600,000 cubic meters of gas, will pay extra AMD 83,000 annually (about AMD 1,200 a month).

Karapetyan believes the increase of the gas price cannot cut gas consumption in Armenia, as the resource is economically sound in the country. According to him, ArmRosGasProm plans to develop a gas consumption program.

He said the gas price rise will not affect the local business, as ArmRosGasProm has no rivals in the region.

On April 1, 2006, the gas price in Armenia boosted from $56 to $110 per thousand cubic meters. To relieve the burden for households and enterprises, the RA Government decided to grant subsidies on gas fees. Some $188.8mln was allocated for ArmRosGasProm as compensation.

As from May 1, 2008, consumers are to pay AMD 90,000 (VAT inclusive) per thousand cubic meters of natural gas and those who monthly consume over 10,000 cubic meters of gas, are to pay some $146.51 (VAT inclusive). –0--