Bulgaria's Bulgargaz Mulls New 3% Gas Price Hike

Bulgaria's Bulgargaz Mulls New 3% Gas Price Hike

The Bulgarian gas supplier Bulgargaz forecasts a 3% price increase in the beginning of October 2010, according to a company letter sent to Bulgarian media Tuesday.

Bulgargaz, however, point out the hike would have been 7%, but new agreements with the Russian energy giant "Gazprom" allowed keeping lower price levels.

The announcement comes on the heels of earlier expectations of the State Commission for Energy and Water Regulation (DKEVR) that in the beginning of the cold season in October prices will go down as much as 10% to 15%.

The Bulgargaz CEO, Dimitar Gogov, is quoted saying he cannot be held responsible for somebody else's forecasts and the price depends on the value of the USD, and the possibility to purchase gas from a new Black Sea deposit.

The official request for the new price will be submitted with DKEVR on September 10.

In the last quarter of the year Bulgargaz will buy twice more gas compared to the third one with part of the volume at preferential prices, lower than previous contracts between Bulgaria and Russia, the letter informs. 424 M cubic meters, however, will have to be purchased at higher prices, leading to the 3% increase.

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