Armenian economist predicts 'over 30% rise' in natural gas tariffs

Analytics 01:20 01.10.2019

The planned increase in the natural gas tariffs is absolutely realistic and expected to be even much higher than the predicted 30%, according to an economist.  

In an interview with Tert.am, Suren Parsyan, also a member of the Armenian Revolutionary Federation-Dashnaksutyun (ARF-D) and a chief officer at the ARF-D Bureau, attributed the price policies in gas supply to the “level of the Armenian-Russian relations”.

″The key issue for the Russian side is to see Armenia as a reliable partner to develop a long-term trust. Yet, Armenia’s move to launch, for instance, a criminal case against the Russian railway - without any tangible outcome for almost a year - makes the Russian side nervous a little bit,″ he said, highlighting the Armenian side’s inability to find “situational solutions”.

Meantime Parsyan admitted that the economic impact will affect also the population’s living standards, endangering the traditionally developing  Armenian-Russian relations.

He noted that the earlier increase (effective since January 1) did not cause any harm to the consumers “due to an arrangement for not revising the prices any motr until the end of the current year”.

“But the debts linked to the proposed hike will make up $30 million until the end of this year. With the cross-border fees expected to increase too, the calculations will cover not only the [planned] hike but also the January 1 tariffs, raising the fees to above 30%,” the economist said, blaming the Public Services Regulatory Commission for a failure to identify the extra costs and losses.

Parsyan said he also believes that Russia moved to insist on higher tariffs in an effort to probe for the public sentiments, as well as the authorities’ attitude towards Russia.

“I don’t think the hike will be below 30%, whereas the Armenian side will have chances for [maneuvers] to say that despite the real possibilities for a 30% increase, negotiations enabled them to agree on lower tariffs. And that will be presented as a victory,” he noted.

Admitting that Armenia’s gas supply network is not without imperfections, the economist also emphasized the need of attracting Russian investments "to raise its efficiency and reduce further losses".

″The increased natural gas tariffs will have a direct impact on the price cost of the products manufactured in Armenia - as well as the services. The prices for our goods will go up too, losing their competitive advantages over the EAEU member states. Hence the important thing Armenia now is to do everything possible to ensure a higher competitiveness - to avoid otherwise causing the [foreign-funded] industries to leave the country’s market,″ he said.

IEPF issued a statement regarding Azerbaijani children at the UN Human Rights Council

News line

Russia accuses Ukrainian military chief of ordering downing of war prisoner plane
22:10 05.07.2025
Türkiye supports firefighting operations in Syria’s Latakia
22:00 05.07.2025
UNRWA calls for immediate fuel delivery to Israel-blockaded Gaza before shutdown of basic services
21:45 05.07.2025
Pashinyan: Armenia needs new constitution
21:20 05.07.2025
UN chief condemns Russia's recent 'series of large-scale' attacks on Ukraine
21:00 05.07.2025
Kazakh servicemen arrive in Azerbaijan to participate in Tarlan - 2025 exercise
20:45 05.07.2025
Erdogan: US has crucial role in achieving ceasefire in Gaza
20:20 05.07.2025
Building collapse in Pakistan kills 15
19:45 05.07.2025
Turkish FM Fidan to attend 17th BRICS Leaders Summit in Rio de Janeiro
19:30 05.07.2025
Australia pledges $283M for green energy project by explosives maker
19:10 05.07.2025
OPEC+ speeds up oil output hikes, adds 548,000 bpd in August
18:45 05.07.2025
Inter completes signing of Ange-Yoan Bonny from Parma
18:20 05.07.2025
Turkish president sees Zangazur corridor 'as part of the geoeconomic revolution'
18:00 05.07.2025
Turkish president urges Azerbaijan, Russia to show restrain amid tension
17:45 05.07.2025
China says war 'not a solution' to Iranian nuclear issue
17:15 05.07.2025
At least 18 people injured after fire alert on Ryanair plane in Majorca as passengers abandon jet & leap from wing
17:00 05.07.2025
Azerbaijani PM meets with UNESCAP executive secretary
16:45 05.07.2025
Lebanese president affirms coordination with Syria, warns against sectarian tensions
16:15 05.07.2025
21 killed in Israeli strikes on tents, school-turned-shelters in Gaza Strip
16:00 05.07.2025
Turkish construction sector takes on international projects worth $6.2B in first half of 2025
15:45 05.07.2025
Azerbaijani woman wrestler becomes European champion
15:30 05.07.2025
Mayor: Death toll in Russian attacks on Kyiv reached two
15:15 05.07.2025
Texas floods kill 24 people and leave many missing from girls' summer camp
14:45 05.07.2025
Conor McGregor has interest in White House fight after Trump's UFC idea
14:30 05.07.2025
Netanyahu era sees 40% surge in Israeli settlements in occupied West Bank
14:15 05.07.2025
Equatorial Guinea sues France in UN court to block sale of Paris mansion
14:00 05.07.2025
US president 'disappointed' over phone call with Putin
13:45 05.07.2025
Academy of Azerbaijan`s State Security Service hosts graduation ceremony
13:30 05.07.2025
Azerbaijan and Pakistan ink memo in Khankendi
13:15 05.07.2025
Trump says there could be Gaza deal next week
13:00 05.07.2025
First flight from Türkiye to Syria launched
12:45 05.07.2025
US marks its 249th anniversary of independence
12:30 05.07.2025
Azerbaijan's role in regional integration discussed at London conference
12:00 05.07.2025
Uzbek Minister: Mirziyoyev's visit to Azerbaijan crucial for dev’t of transport links
11:45 05.07.2025
Trump says US will start talks with China on TikTok deal this week
11:30 05.07.2025
Prime Minister of Pakistan Muhammad Shehbaz Sharif concludes visit to Azerbaijan
11:15 05.07.2025
Pakistani premier proposes low-emissions corridor at Economic Cooperation Organization summit
11:00 05.07.2025
Rwanda pledges to deliver on its part of US-brokered peace deal with DR Congo
10:45 05.07.2025
Hezbollah rejects calls to disarm before end of Israeli ‘aggression’ against Lebanon
10:30 05.07.2025
Trump says Gaza ceasefire deal may come next week after ‘positive’ Hamas response
10:15 05.07.2025
Hamısı