Gas: the most available energy resource in Armenia?

The situation is controversial: despite obvious dissatisfaction with raise in gas tariffs, number of gas consumers in Armenia keeps growing.

Concurrently to an increase in gas tariffs on April 1, 2010, prices at gas stations also went up, reaching AMD 200 per 1 kg instead of the previously established AMD 180. As a PanARMENIAN.Net correspondent was told at the transport department of Yerevan Mayor's Office and at the RA Ministry of Transport and Communication, transport workers have not requested price increase so far.

April 10, 2010

PanARMENIAN.Net -

Gas prices in Armenia went up from AMD 96 to 132 per cu m. Enterprises consuming over 10 000 cubic meters monthly pay $243.13 per 1000 cu m. The Public Services Regulatory Commission explained the 37% rise in prices for population and 13% for enterprises by a 17% up for Russian gas, AMD/USD reference exchange rate, 20% reduction in natural gas consumption and necessity to compensate ArmRosgazprom's investments.

Despite the rise in prices, gas remains the most available energy resource in Armenia, a spokesperson for ArmRosgazprom, Shushan Sardaryan said.

“The company repeatedly expressed concerns over the socio-economic situation caused by the rise in prices. But gas can't be sold below cost,” the spokeswoman stated.

“Raise in pensions and benefits in connection with the increase in gas rates is a small positive step, which, however cannot be a radical solution to inflationary pressures,” Artsvik Minasyan , Deputy Chairman of the NA Standing Committee on Financial, Credit and Budgetary Affairs, ARF Dashnaktsutyun member told a news conference on March 5.

"Inflation has "eaten up" all these increases in pensions and benefits. The government's steps towards overcoming the crisis are very cautious and superficial," he stressed.

RA Deputy Finance Minister Vardan Aramyan disagreed, noting that the expected increase in benefits from May 1 to AMD 3.5 thousand will not only compensate the rise in gas prices, but also cover increasing prices for other products in inflation circumstances.

"In the minimum consumer basket of AMD 28.8 thousand, the share of utility expenses is AMD 2.6 thousand, including AMD 500 for natural gas, increased to AMD 700 after the 37.5 per cent raise in gas tariffs," RA Deputy Minister of Finance explained.

According to recent official data, the number of gas consumers has increased by 10 000, totaling 600 000 regardless of the scheduled April 1, 2010 tariff increase. The situation is controversial: despite obvious dissatisfaction with raise in gas tariffs, number of gas consumers in Armenia keeps growing.

Victoria Araratyan / PanARMENIAN News