Bulgaria Govt Oks 6% Natural Gas Price Hike

Bulgarian citizens have rallied recently against DKEVR's decision to increase natural gas price, photo by BGNES

Bulgaria's Cabinet has approved a 5,88% increase of natural gas prices starting April 1, 2010.

On Wednesday, the government upheld the motion of the Bulgarian Minister of Economy, Energy, and Tourism, Traicho Traikov to reduce the price set recently by the State Energy and Water Regulatory Commission (DKEVR).

On Monday, the DKEVR announced that there will be a 10,88% increase in the price of natural gas from the beginning of the second quarter of 2010.

However, Minister Traikov ordered a reduction in the price set by the Commission in order to keep the price for heating and hot water at an acceptable level. The new gas price will be valid from April 1 till June 30, 2010.

Bulgaria's two major labor unions have demanded a freeze of natural gas prices as an anti-crisis measure, claiming that a price hike will harm industrial productions using gas.

Yet, the government believes that the current increase is minimal and will not affect the business of energy enterprises, neither will it impede the supply and consumption chain.

Amidst the gas price debates among the government, the trade unions, and the state regulator, last week, Bulgaria's Finance Minister Simeon Djankov ordered an audit of the state natural gas monopoly Bulgargaz over accusations that it uses murky methods in determining prices. The idea of the audit is to inspect potential violations in that respect in order to keep down natural gas prices.

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