1 Jul 2022 14:25

Gas price for end consumers in Moldova may grow again - Moldovagaz CEO

CHISINAU. July 1 (Interfax) - JSC Moldovagaz CEO Vadim Ceban has warned of a possible upcoming growth of the gas price for end consumers in Moldova.

It became known on Thursday that the price for natural gas imported by Moldovagaz from Russia's Gazprom will be raised on July 1, Ceban said.

"According to preliminary information, the purchase price for gas will be $980 per 1,000 cubic meters, which is $100 more than in June. This price is considerably higher than the price envisaged in the tariff. It allows us to demand an increase of the price, which is calculated based on the current method and in accordance with the law," he said.

The company will start buying gas at the higher price from Friday, and, therefore, it plans to ask the National Agency for Energy Regulation (ANRE) to raise the price, Ceban said, without disclosing exactly what price hike the operator will be seeking.

A month ago, the ANRE agreed to increase the natural gas price for end consumers in Moldova by a further 30% from June 1. The price was then raised from 15.18 leu ($0.79) to 18.62 leu ($0.97) per one cubic meter of gas, including the 8% VAT. That means that the ANRE only partially granted the request from Moldovagaz, which asked the regulator for a 58% increase, to 24 leu ($1.26) per one cubic meter of gas.

Moldovagaz and Gazprom signed a five-year contract for the supply of gas that came into force on November 1, 2021. After the new contract was signed, the price for consumers was brought in line with its terms, going up by 2.4 times. The price was raised by another 40% on January 1, and by a further 30% on June 1.

The price for gas from Gazprom was $450 per thousand cubic meters in November 2021, $550 in December, $647 in January, $564 in February, $547 in March, and $1,193 in April, $920 in May, and $880 in June.