Will Gas Prices Rise on April 1? Hraparak

It is possible that in February, "Gazprom Armenia" will submit a request for a gas price increase. This was reported by Hraparak.am, adding that the gas price at the border will remain the same, but the price of gas supplied to consumers within the country will change, with several factors included in the justification, including the expenses of "Gazprom Armenia."

The chairman of the Public Services Regulatory Commission, Garegin Baghramyan, did not deny the possibility of a gas price increase in a conversation with Hraparak.am, although he noted that they have not yet received a request from "Gazprom Armenia" at this moment; before sending a request, they must first communicate this intention through the media.

"The issue is more related to the inter-agency agreement that exists, where changes were made concerning "Hrazdan-5.' It was stipulated that starting April 1, mechanisms for calorific value calculation should be in effect, the formula for which exists. Of course, the border price is set at 7900 kilocalories, and in fact, there was no adjustment factor applied for the change or correction of the border price in calorific value, which has always been fixed by separate agreements, indicating that it would not be applied this year or next year. This latest agreement stated that there should be developed mechanisms by April 1. But the price at the border will remain the same since there is a 10-year agreement on that matter, and it directly correlates with the payment for the capacity of the "Hrazdan 5" energy block. In other words, it is not about the amount of the gas price at the border but rather pertains to the adjustments that can be made based on calorific value," said Garegin Baghramyan, noting that currently, gas with a higher calorific value is entering Armenia, approximately 8300 kilocalories (Kcal).

According to Baghramyan, this means that while the absolute value of the gas price at the border will remain the same, adjustments can be made based on calorific value, which implies that for every 1000 cubic meters of gas at the price of $165, an adjustment factor can be applied depending on the actual calorific value of the gas supplied. This means that consumers in Armenia will have to pay more for gas with higher calorific value. Additionally, other factors may also influence the increase in the gas price if "Gazprom Armenia" decides to submit a request for a price change.

It is worth noting that on December 22, Deputy Prime Minister Mher Grigoryan stated that Armenia and Russia agreed to maintain the gas price at the border in 2022, but there were still issues that needed adjustment. "The current price at the border ($165 per thousand cubic meters - editor's note) will be maintained next year, but there are two questions that need to be agreed upon. The first concerns the 5th energy block of Hrazdan HPP, and the second is the inclusion of gas calorific value in the price. These issues are under discussion, but the gas price has been established and extended," Grigoryan stated.