New natural gas prices take effect in Armenia on April 1

YEREVAN, April 1. /ARKA/. New natural gas prices set earlier by the Public Services Regulatory Commission (PSRC) have come into force in Armenia on April 1. 

Natural gas prices have not risen for vulnerable families, which use up to 600 cubic meters of natural gas per year. Until now, they paid 100,000 drams per one thousand cubic meters. The price includes VAT.

The price for all other households will grow to 143,700 drams. The price for greenhouses from November 1 to March 31 inclusive will be the equivalent of $233.9 per thousand cubic meters, including VAT.

The price for agricultural processing companies producing canned food, drinks and dairy products will be the equivalent of $233.9 per thousand cubic meters, VAT included.

The price for natural gas sold to other consumers, including thermal power plants, which use up to 10 thousand cubic meters of natural gas per month will be 143,700 drams, including VAT. For those which use over 10,000 cubic meters, the price will be the equivalent of $265.81, including VAT.

The bulk of households, which use up to 600 cubic meters a year, paid until today 139,000 drams per one thousand cubic meters.

The additional revenues raised by the higher price will be used to pay annually $31.79 million to Russian Gazprom for 10 years because Armenia failed to meet its commitment to return the investment made by Gazprom in the fifth power unit of the Hrazdan Thermal Power Plant.

Under the Armenian-Russian agreement the Russian natural gas will be provided to Armenia at the stable price of $165 per one thousand cubic meters for the next 10 years.  

The Russian natural gas is delivered to Armenia through Georgia by Gazprom to its subsidiary - Gazprom Armenia. Gazprom Armenia also deals with the storage, distribution and sale of gas. -0-