CONSUMER GAS PRICES SET TO RISE APRIL 10

UNCLAS YEREVAN 000364

SIPDIS

DEPT FOR EUR/CARC, EUR/ACE

E.O. 12958: N/A
TAGS: ECON ENRG AM
SUBJECT: CONSUMER GAS PRICES SET TO RISE APRIL 10

REF: YEREVAN 281


1. Effective April 10, Armenian consumers will pay
the Armenian Dram equivalent of USD 0.20 (up from
USD 0.13) per cubic meter (residential rate) and USD
0.1465 (up from USD 0.08) per cubic meter
(industrial rate) for Russian natural gas under a
new pricing scheme adopted by Armenia's Public
Services Regulatory Commission (PSRC) March 10. The
new rates significantly increase the cost of natural
gas for Armenian consumers (52 percent higher for
residential consumers and 85 percent higher for
industrial consumers).


2. ArmRosGazProm's consumer price increase is set
to follow an increase in the import price of Russian
gas (from USD 0.056 to USD 0.11 per cubic meter)
beginning April 1 (reftel). ArmRosGazProm proposed,
but the PSRC rejected, an initial scheme which would
have increased the price of natural gas for
residential customers from the Armenian Dram
equivalent of USD 0.13 to USD 0.24 and from USD
0.008 to USD 0.145 per cubic meter for industrial
consumers.
EVANS