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Natural gas prices might triple after accesion to EU

Vineri, 10 februarie 2006, 0:00

The purchasing cost of natural gases from internal production might triple in the view of Romania’s accession to the EU, according to representatives of Distrigaz Nord, a Romanian natural gas delivery company covering 20 out of the 41 counties.

The director of the national authority for regulating natural gases (ANRGN), Gabriel Sarbu, quoted by Hotnews, said that the three fold increase in the price will follow Romania’s accession to the EU, and will enter into effect gradually.

Throughout the liberalization process of the internal market, the purchasing cost from internal production will increase within limits imposed by the import prices.

The ANRGN has recently presented the Government with a new proposal of gradual increase in the natural gas price from internal production.

The Authority already announced a 30-34 per cent increase for 2006, out of which 17 per cent came into effect on January 1. Two more increases will follow, on April 1 and July 1, but not to the same extent as the first one, says Sarbu.

The tripling of purchasing costs does not entail the tripling of the consumer price, as the former influences up to 80 percent of the latter, say the Distrigaz spokespersons.

The price of the natural gas from internal production is of $110 / thousand cubic meters, whereas the price for imported natural gas is around $280/tcm, according to ANRGN assessments.

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