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Why is the gas costing USD 189 at the border sold to the consumer at USD 400?

January 18,2014 15:31

Bostanjyan_0222“There is a possibility that as a result of the rally organized on January 18, the gas price issue will be reviewed,” such opinion was expressed by former PAP MP Vardan Bostanjyan. Referring to recent developments in gas and the formation of gas price, Mr. Bostanjan presented the following simple formula: “With regard to the gas price, the President of Russia has said that we’ll reach 1,000 cubic meters of gas for you to the border at USD 189, by Russia’s domestic consumption prices, you solve your part of the issues. If we pay 400 or more for the consumption, it becomes clear that the gas price for our consumer grows by more than 200%. How comes it? Especially when the gas relations were kept secret for a long time. Does anyone know anything? If yes, let him go. It’s not clear even to the authorities. It is not also clear whether the debt is a debt, or a balloon.” Aravot.am was interested to know economist Tatul Manaseryan’s assessment of why the gas price costing USD 189 at the border reaches the consumer at USD 400.

He replied, “Still, in the spring, we had presented a requirement to “ARG” to submit transparent estimations about the costs, how their profit is formed, and how the tariff received at the border is almost doubled while getting to the consumer. Currently, there are no major investments made by “ARG”; there are no major expenses. However, we have not received a response. Ask, maybe they will answer you.” We did not succeed to get any answers from “ArmRusGasard”. However, we are ready to publish their views, too.

Tatev HARUTYUNYAN  

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