Gas Prices to Drive Up Inflation by Half PercentMar 31st, 2010 | Category: Economy
YEREVAN (ARKA), March 31–The natural gas price rise in Armenia will drive up inflation 0.5 percent, Gurgen Martirosyan, chief of Armenian National Statistical Service’s unit on prices, said Tuesday at a press conference.
“Gas expenses are included in subsistence. If gas prices go up, but prices for other services remain unchanged, the gas price rise alone will heighten inflation 0.5 percent,” he said.
But it is not clear yet whether there’ll be any increase in prices for other services or not.
Martirosyan said that increase in gas and water prices added 1.5 percent to the 2009 inflation, which reached 6.5 percent.
Natural gas prices for Armenia’s consumers will be raised 37.5 percent to 132 dram on April 1, from 96 dram per one cubic meter.
Those consumers using more than 10,000 cubic meters of gas monthly will pay $243.13 per each 1,000 cubic meters instead of the current cost of $215.
Armen Poghosyan, the chairman of Armenian Association of Gas Consumers, is convinced that the gas price rise will impact prices for other services.
In his opinion, prices for other goods and services can’t remain pegged after the increase in gas prices.
Poghosyan said that Yerevan Jur Water Company is now reconsidering water prices.
In late February, Yerevan Jur Water Company appealed to the Public Services Regulatory Commission proposing to raise water price from present 181 per one cubic meter to 207 dram.