September 24 (SeeNews) - State-owned monopoly Bulgargaz believes domestic gas prices should rise by 25% to 470 levs ($355/240.3 euro) per 1,000 cubic metres, value-added tax excluded, in the first quarter of next year, state-run news agency BTA reported on Thursday.
Bulgargaz has already asked the country's energy regulator to raise gas prices by 2.49% to 374.13 levs per 1,000 cubic metres, value-added tax excluded, in the fourth quarter of 2009. The State Energy and Water Regulatory Commission will decide on the proposal on Monday.
The 25% rise in gas prices, which Bulgargaz believes should be introduced from January 1 next year on top of the 2.49% increase from October 1, takes into account the company's expectations of a rise in fuel oil prices to $400-$420 per tonne, a crude oil price of some $70 and an exchange rate of 1.40 Bulgarian levs per U.S. dollar, BTA quoted Bulgargaz executive director Dimitar Gogov as saying.
Bulgaria, which imports from Russia more than 85% of the gas it needs, replaced in 2006 its deal with Russia's Gazprom for the supply and transit of natural gas through 2010 with a new contract that the government in Sofia said envisaged a gradual rise in delivery prices until 2013 and an increase in transit volumes until 2030.
(1 euro = 1.95583 Bulgarian levs)
Bulgargaz EAD is among the biggest companies in SEE. You can download our SEE Top 100 ranking
here or subscribe to our free Top 100 newsletter
here