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Lithuanian Gas intends to raise gas price for households by 22 percent

Dujos
Laurio Viksnės/BFL nuotr. / Dujos
Šaltinis: BNS
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Lithuania’s natural gas import and distribution company Lietuvos Dujos (Lithuanian Gas) has confirmed officially that it intends to increase the price of natural gas for household users by 22 percent on average from 1 July.

The company has proposed the raise the light of changes in the prices of imported gas in the first half of 2012 and global trends on crude oil and currency markets.

The board of Lietuvos Dujos took a respective decision on Monday, the company said in a press release.

The board’s decision needs approval of the National Control Commission for Prices and Energy, which will be asked to adjust the prices in the nearest time. The panel will have to take a decision by the end of May with a month left until the introduction of new prices.

“The rates of natural gas for household users remained unchanged during one year although the prices of petroleum products, as well as the import prices of natural gas increased by more than one-fifth over the period. The company’s board decided at the end of 2011 that it would not increase the price from January 2012 since it expected the situation on the energy resources market to improve, that is, it expected the prices of energy resources to go down. Unfortunately, the prices of petroleum products and natural gas continued to grow fast in 2012 due to reasons outside the company’s control,” the press release said.

Moreover, the changes in the euro vs US dollar exchange rate were unfavorable during that period, the company said. Lietuvos Dujos estimates that it would suffer a loss of some 17 million litas (EUR 4.93 m) from the sale of gas to household users in the first half of this year.

“The company has not counted these losses when establishing the rates of natural gas for the second half of 2012. These costs will be offset in later periods,” the company said.

The Lithuanian government owns 17.70 percent of Lietuvos Dujos, which is listed on the blue-chip Main List of the NASDAQ OMX Vilnius stock exchange. Gazprom holds a 37.06 percent stake and E.ON Ruhrgas International owns 38.9 percent of shares.

BNS
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