26 Aug 2009 18:43

Domestic Russian gas prices to average up 26.6% in 2010

MOSCOW. Aug 26 (Interfax) - Gas prices on the domestic Russian market will average up 26.6% in 2010, Yelena Karpel, head of pricing at gas monopoly Gazprom , said during a conference call.

Months of talks with the relevant agencies on domestic gas prices in 2010-2012 have produced a decision to raise domestic gas prices 15% on January 1, 2010.

But "if you take average year-on-year prices, the increase will be 26.6% because prices were adjusted on a quarterly basis in 2009," Karpel said.

Tariffs for gas transportation by independent producers will also go up, she said.

As for 2011-2012, Karpel said a 15% annual increase has been penciled in. But we hope this will be discussed further next year," she said.

"Domestic gas prices must be brought to an economically justified level, and they will as a result achieve net-back parity with the external market," she said.