Wholesale price for LPG might jump 15% in July 2012
MOSCOW. Oct 21 (Interfax) - The Federal Tariff Service is proposing to raise the price cap on liquefied petroleum gas (LPG) for household purposes by 15% to 8,746 rubles per tonne (not including VAT) as of July 2012.
The draft decree has been posted on the regulator's website. The wholesale price for household LPG is now 7,605 rubles, up from 6,613 rubles in 2009.
The government sets LPG prices every year under so-called "balance targets," a system that requires producers to supply sufficient amounts of gas to the public utilities and housing sector before selling gas on the free market.
Officials from the Federal Tariff Service, Federal Anti-Monopoly Service and Energy Ministry have repeatedly said the LPG market needs to be liberalized because the dual market, at regulated and free prices, creates opportunities for abuses and encourages a gray market.