HomeMediaLatest NewsGas tariffs from July 1: what Gazprom wants and why high prices are harmful for the country

Gas tariffs from July 1: what Gazprom wants and why high prices are harmful for the country

05 June 2024

Belogoryev Alexey M. Research and Development Director, Director of the Center for Energy strategic analysis and forecasting

Alexey Belogoryev, Research and Development Director of the Institute for Energy and Finance, commented to Novye Izvestia on the prospects for rising gas prices in the domestic market, the general financial and economic situation in the gas industry and the expediency of its reform.

Alexey Belogoryev says:

— It is clear that Gazprom would like to raise prices by one and a half or two times. You can also increase it 10 times. It is clear that any supplier wants to sell their product at the highest possible price. Since the domestic Russian market is the largest and most basic, it used to be the main one in terms of volumes, and now it is becoming more and more important in terms of revenue, the issue of balance between the interests of producers and consumers is important here.

For the domestic situation, a sharp increase in tariffs will mean an acceleration of inflation, the analyst believes.

Due to the fact that gas dominates the electric power industry in the European part, where 70% of the country's population lives, and 80% in the Urals, the cost of gas is included in the cost of electricity, and this applies to all consumers. The economic issue is becoming an important socio-political issue, the expert believes:

— Raising tariffs for the population at an even faster pace contradicts its own policy. I think prices will rise, and the government will try to keep them within the limits of inflation, maybe with a slight plus to inflation, plus one or two percent. But it is not true to say that the government is ready to raise tariffs by 20% per year. The government is not ready for this, and the economy is not ready for this.

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