Gas price growth may have its reflection on consumers: economist

Economist Vardan Bostanjyan says that thought the authorities claim that the raise of gas tariff will not have any impact on the consumers, it does not reflect the real situation.

“Irrespective of the circumstance that claims were made that the tariff would not go up, it did by 10%. It is a big price for the citizens, and though the new authorities claim that it will not have any impact on consumers, it does not reflect the right situation, as we know that Gazprom Armenia is still discussing the issue,” Bostanjyan said.

He noted that in economics there is no such definition that a company takes the burden on its shoulders.

“If it happens so, it will result in job cuts, if this happens, the natural work of the system may be endangered,” the economist said.

Referring to the arrangement reached at the Armenian-Russian inter-governmental session that by July 1 a draft agreement will be submitted registering the gas price formation mechanisms, Bostanjyan said it is not clear yet what price will be fixed for Armenia. He stressed that if international prices are fixed for Armenia, it will be much more expensive than the price set currently.

“Russia does not have a big trust toward Armenia as its partner which may result in reduction of trade turnover volume,” Bostanjyan said.