Regulated gas prices in Russia rising 3.9% after two-year freeze
MOSCOW. July 3 (Interfax) - Wholesale prices of gas for industry sold by Gazprom went up by 3.9% as of July 1.
This level of price indexation was factored into the forecast for Russia's social and economic development in 2017 and the planning period of 2018 and 2019 that was published on November 24, 2016, as well as a draft order of the Federal Antimonopoly Service (FAS) released on May 11.
The last time gas prices changed was on July 1, 2015. In the summer of 2016, a price hike of 2% was discussed but gas prices were not raised because the regulator decided to change the method of pricing, as responsibility for setting rates was transferred from the Federal Tariff Service to FAS.
This price increase will bring gas prices in Russia up to the netback level of exports. The regulated price of gas is calculated based on changes in prices in Gazprom's contracts in Europe, which are based on prices for gasoil and fuel oil, with a decreasing coefficient. In the last valid document, which set prices as of July 2015, the coefficient was 0.616. In the new rate, the coefficient is 0.9926, or almost one.