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The gas supplied to Armenia is not the cheapest in the region

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  • The gas supplied to Armenia is not the cheapest in the region

    Economist: The gas supplied to Armenia is not the cheapest in the region

    ARMINFO
    Tuesday, May 21, 18:16

    The Government's statement that the gas supplied to Armenia is the
    cheapest in the region is absurd, Artsvik Minasyan, MP from ARF
    Dashnaktsutyun, said at a press conference on Tuesday.

    Minasyan said that since Armenia has handed over more than 80% of
    energy capacities to Russia, one should take into account the price at
    which the gas reaches the consumers, not the price the gas is sold at
    on the border. "If we look at the problem from this point of view, the
    highest gas tariff is offered to Armenia. The tariff for Armenia is
    higher than the one for Georgia", he said. Minasyan also assured that
    the amount of gas consumed in Armenia is only 2-2.5% of the gas
    consumed in the CIS. He thinks that this small figure cannot seriously
    affect the financial condition of Gazprom. The economist also advised
    the authorities to think about nationalization of ArmRusgasprom CJSC.

    The MP is not inclined to consider the rise in gas tariffs from the
    political viewpoint. However, if the gas price is connected with a
    political haggle between Armenia and Russia, official Yerevan should
    refuse such a strategic partner. "This will mean that Russia has
    launched a program "Armenia without Armenians"; subsequently, we don't
    need such an ally", he said.

    Following the rise of the Russian gas tariff for Armenia from the
    current $180 per 1,000 cu m to $270, ArmRusgasprom applied to the
    Public Services Regulatory Commission for increasing the gas tariff
    for the population by 67.4% - from the current 132,000 drams to
    221,000 drams per 1000 cu m, and for the large consumers by 61.3% -
    from $243 per 1000 cu m to $392. The Government of Armenia is going to
    subsidize the Russian gas import price by 30%. On May 20 PSRC Chairman
    Robert Nazaryan said that according to the preliminary data, the gas
    price for the population of Armenia may grow to 20%, and for
    commercial consumers - by 15%. The Russian gas price in Armenia has
    not changed since April 2010. Armenia also receives Iran gas and pay
    for it with electricity at the rate of 3 KW/h per 1 cu m of gas.




    From: A. Papazian
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