Gazprom-Armenia seeks gas price rise for households

| News, Armenia

On 1 April, Armenia's national Russian-owned natural gas distributing company Gazprom-Armenia said it will ask the Public Services Regulatory Commission (PSRC) to allow it to revise the prices of natural gas supplied to various categories of consumers, reported arka.am. 

Gazprom Armenia said it wants the changes to take effect on July 1, 2020 for all consumers, with the exception of thermal power plants, for which the proposed tariffs are to enter into force on August 1, 2020.

It emerged that the distributor wants to raise the price for consumers who are entitled to family or social allowances (consuming up to 600 cubic meters of gas per year) from the current 100,000 drams up to 135,900 drams per one thousand cubic meter. The company also wants to lower the gas price for consumers who use up to 10 thousand cubic meters of gas per month, from the current 139,000 drams to 135,909 drams per one thousand cubic meters.

The company also wants to revise tariffs for the services of the natural gas distributing operator from the current 25.07 drams to 23.124 drams per one thousand cubic meters. The tariff for the distribution of natural gas is proposed to reduce from 26,947.089 drams to 21,724.785 drams per one thousand cubic meters, while the tariffs for natural gas transportation services are proposed to increase from 11,347.532 drams to 13,282.688 drams per one thousand cubic meters.

The spokesperson for the Public Services Regulatory Commission Liana Azizyan said that the commission has not yet received the company's application.

Although the Russian natural gas is delivered to Armenia by Gazprom at $165 per one thousand cubic meters, Gazprom’s Armenian subsidiary – Gazprom Armenia – sells it to the bulk of Armenian households at almost $300.

A day earlier, it was reported that the Armenian authorities are seeking to lower the gas imports from Russia (Caucasus Watch reported). 

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