Gas Prices Set to Rise Again, Says 'Hayastani Hanrapetutyun'

The newspaper 'Hayastani Hanrapetutyun' reports that a rise in gas prices in Armenia is more than likely in the near future. Despite the fact that the price of gas supplied from Russia has remained unchanged since 2021, at $165 per 1,000 cubic meters, this stability only applies to the first quarter of the year.

Why are experts convinced that gas prices will rise again? They point out that last July, the tariff for large consumers also increased. According to economist Suren Parsyan, the current tariff for natural gas for residential consumers (those consuming up to 10,000 cubic meters per month) stands at 139 drams per cubic meter. This tariff is calculated based on the exchange rate approved by the government budget in 2020, which was set at 480 drams per dollar.

Approximately 2.2 billion cubic meters of gas are imported from Russia to Armenia annually, which costs $165 per 1,000 cubic meters. For large consumers, the natural gas tariff is set in dollars and adjusted monthly based on the exchange rates, while for residential consumers, it is set in drams. Of the 2.2 billion cubic meters of gas imported, residential consumption accounts for 0.7 billion cubic meters, meaning that 31% of the imported gas volume is calculated in drams, based on the established exchange rate.

However, following the trilateral statement on November 9, the dram depreciated significantly by 6.6% or 35 drams, reaching a rate of 525 drams per dollar. This substantial and prolonged depreciation creates economic grounds for 'Gazprom Armenia' to submit a request for a review of the natural gas tariff for consumers, noted Suren Parsyan.

Indeed, many factors influence the natural gas tariff. However, the prerequisites for a price increase are also working well.