ArmInfo. A substantial format for resolving the issue related to gas prices is based on the introduction of an excise tax on energy products. Chair of the "LOGIKA" (NGO) Independent Research Center of Business, Economy and Finance, a candidate of economic sciences, associate professor of YSU and RAU Ara Karyan expressed a similar opinion at the June 3 press conference. At the same time, he noted due to the closure of borders, labor migrants will not be able go to seasonal work, serious problems should also be expected with the country's balance of payments. "Of course, the balance will more or less be maintained, but its organization will change," the economist said. Karyan called for a reconsideration of the decision to increase gas prices for business entities, in which case negative consequences for the Armenian economy cannot be avoided.
The Public Services Regulatory Commission (PSRC), in his words, should refer this issue to the Government of Armenia, which will not violate the law, because, as Karyan noted, there is an article allowing the cooperation of the latter.
"The government needs to hire several independent expert groups to identify whether there are reserves in Armenia to cover that $ 15 increase in gas prices," he said. If gas prices are reduced, Armenia should introduce an excise tax on energy products. <This reserve will go to replenish the budget, and will not lead to higher prices. We don't have to pay anything extra, but the budget will be replenished>, said Karyan, noting that a similar approach has long been applied in Europe.
To note, on June 4, the Public Services Regulatory Commission (PSRC) will hold regular discussions on the new gas tariffs proposed by Gazprom Armenia. According to the press service of the regulator, representatives of public organizations involved in consumer protection will become participants in the upcoming discussions. According to the information posted on the PSRC website, the Commission proposes to maintain the final tariff for individuals in the amount of 139 thousand AMD per 1 thousand cubic meters of blue fuel versus 135 thousand proposed by Gazprom Armenia. PSRC also considers it necessary to leave unchanged the size of the tariff for socially disadvantaged groups of the population- 100 thousand drams per 1 thousand cubic meters.
At the same time, the rate of tariff for gas consumed by greenhouse farms will increase slightly. In particular, instead of 283.14 AMD proposed by the gas monopolist, PSRC proposes setting a tariff of 224 AMD instead of current 212 AMD. For agricultural processing enterprises, instead of 212 AMD, the Commission currently considers the option of 224 AMD acceptable instead of 283.14 drams proposed by the company. Tariff for natural gas up to 10 thousand cubic meters sold to thermal power plants will remain the same - 139 thousand AMD per 1 thousand cubic meters instead of 135.9 thousand AMD proposed by the company. For consumers who consume more than 10 thousand cubic meters per month, the tariff will be set at $ 255.92 instead of $ 283.14 offered by Gazprom Armenia CJSC.
To recall, speaking at the online summit of the EAEU leaders on May 19, Prime Minister of Armenia Nikol Pashinyan stated that global challenges dictate the EAEU the urgent need to form a common gas market. "The formation of a unified system of gas tariffs is a necessity that is felt especially urgently in Armenia. I am convinced that the common market will contribute to increasing the competitiveness of goods by increasing the potential of the EAEU many times. Without this, ensuring equal business conditions for all states is impossible," he stressed.
In response, Russian President Vladimir Putin pointed out that a single gas tariff in the EAEU implies a single market, a single budget, a single taxation system. Meanwhile, a similar level of integration in the EAEU, according to his estimates, has not yet been achieved. Accordingly, while prices should be formed on the basis of market conditions. Taking into account costs, investments, providing profit for suppliers. "The formula of the EAEU countries for gas prices proposed by the draft EAEU Development Strategy until 2025 is supported by Russia, Kazakhstan and Kyrgyzstan. Our Armenian and Belarusian counterparts have not yet accepted this formula," Putin said.
