Change of gas prices to result in drastic rise of prices, poverty: expert

The change of the gas prices in Armenia will result in sharp rise of prices, deepening of poverty as the change targets the socially insecure cluster of population, energy safety expert Vahe Davtyan told Aysor.am.

He said on the other hand the change will target enterprises as well.

“Currently the Public Services Regulatory Commission does not have real, effective and pragmatic tools to influence the price policy of Gazprom Armenia. According to the agreements signed in December 2013, the annual income of the company must make 9%,” he said, stressing that it is rather complicated figure if to consider the investment policy of the company and the modest dynamics of gas consumption in the country.

“I have many times stressed and I want to emphasize again that Armenia and Russia must not negotiate over the price but must discuss the issue of revising some provisions of the agreements which restrict the conduction of social-oriented tariff policy in Armenia,” Davtyan said.

Referring to the proposal of deputy prime minister Mher Grigoryan on starting new negotiations over reduction of price on the border, the expert said it showed that till now either the negotiations were not proceeding, or were proceeding with very low tempo, or were not proceeding in favor of Armenia.

“I think Mher Grigoryan’s letter to Gazprom administration’s chairman Alexey Miller testified it,” the expert said.

He added that the deputy PM offers the Russian side to synchronize the price on the border with the spot prices in the European market.

“But these prices are not for long-term but temporarily. The prices will inevitably go up and in 2021 the gas prices in the international market will be the same as previously,” he said.

“Tomorrow after the market regulates the gas price on the border will essentially increase for Armenia. What will we do? Will we again apply to Miller with request to reduce the price. Our short-term steps may have very negative consequences in mid-term and long-term perspective as the prices will regulate in just a year,” he said.