Regulator proposes liberalizing gas prices after 2017 - paper
MOSCOW. April 6 (Interfax) - Russia's Federal Anti-Monopoly Service (FAS) is proposing to index wholesale gas prices for industry by 4% as of July 1, 2017, business daily Vedomosti reported.
The paper, citing a letter dated March 18 that the regulator sent to the Economic Development Ministry and Finance Ministry, said gas prices will be liberalized after 2017 - they will be determined on the basis of exchange trading indicators.
FAS is proposing to set growth of market prices in 2018-2019 at no less than the rate of inflation.
The Economic Development Ministry believes that wholesale gas prices will continue to be indexed in 2017-2018, and by a maximum of 3%. Inflation, according to the ministry's tentative projections, will be 5-5.5% in 2017-2019. The Cabinet will approve the final economic forecast at the end of April.
The government indexes wholesale prices only for the gas of Gazprom , but regulated tariffs also affect independent producers, as they look to them when they offer discounts to customers. In 2008-2013, wholesale gas prices rose faster than inflation, as the regulator raised prices to achieve export parity. The government has been holding back prices since 2014 - the indexation for 2016 was only 2%.