As of 1 May 2008, the Armenian government will end the state subsidy for natural gas supply fees for households and enterprises.  This was announced by newly appointed Prime Minister Tigran Sarkisian during his first press briefing on April 15, reported Armenia Now.  “By the president’s order, the government is working out a program of complex actions to prepare for the 2008-2009 winter,” Sarkisian said. He stressed that the government will focus on protecting socially vulnerable sectors of the population, or 130,000 families, from rising costs.  Sarkisian pointed to the realities of the global market and the policy of liberalization being carried out by Russia as reasons for the increased gas tariffs in Armenia. 

A subsidy was enacted to relieve the burden for private citizens and industry following the drastic April 2006 price increases on gas supplies.  A sum of $188.8 million was transferred to ArmRosGazprom (ARG) as a partial compensation for the tariff, but the compensation sum had run out by early this year, said Energy Minister Armen Movsisyan, the news source reported. 

As a result, the price of natural gas is expected to rise to 84,000 AMD per 1000 cubic meters, from the current price of 59,000 AMD per 1000 cubic meters.

This information was originally published on April 16, 2008. (www.armenianow.com)